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The relative effect of family and financial characteristics on educational echievement

  • Economics
  • Education
  • Political Science


CEE new dp 08.PDF The Relative Effect of Family and Financial Characteristics on Educational Achievement Arnaud Chevalier and Gauthier Lanot May 2001 ISSN 2045-6557 Published by Centre for the Economics of Education London School of Economics and Political Science Houghton Street London WC2A 2AE Ó Arnaud Chevalier and Gauthier Lanot, submitted October 2000 ISBN 0 7530 1439 4 Individual copy price: £5 The Centre for the Economics of Education is an independent research centre funded by the Department of Education and Employment. The view expressed in this work are those of the authors and do not necessarily reflect the views of the Department of Education and Employment. All errors and omissions remain the authors. Non-Technical Summary Britain is characterised by a low rate of post compulsory schooling compared to other European countries. To reduce this disparity, the British government has been testing an Education Maintenance Allowance (EMA) where 16 to 19-year olds are given financial support to attend schooling when the family income falls below a threshold. This paper attempts at first separating family and income effects and second estimating the impact of a financial transfer on educational attainment. Children from poorer backgrounds are generally observed to have lower educational outcomes than other youth. However, the mechanism through which household income affects the child’s outcomes remains unclear. Either, poorer families are financially constrained which prevents them from investing in the human capital of their offspring, thus, policies of financial support could be efficient at reducing schooling inequality. Or, some parents may be endowed with characteristics that make them less successful on the labour market and worse at

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