Where do STEM graduates stem from? The intergenerational transmission of comparative skill advantages

Eric A. Hanushek; Babs Jacobs; Guido Schwerdt; Rolf van der Velden; Stan Vermeulen; Simon Wiederhold

Where do STEM graduates stem from? The intergenerational transmission of comparative skill advantages

Eric A. Hanushek, Babs Jacobs, Guido Schwerdt, Rolf van der Velden, Stan Vermeulen, Simon Wiederhold

Research output: Working paper / Preprint › Discussion paper

Abstract

The standard economic model of occupational choice following a basic Roy model
emphasizes individual selection and comparative advantage, but the sources of comparative advantage are not well understood. We employ a unique combination of Dutch survey and registry data that links math and language skills across generations and permits analysis of the intergenerational transmission of comparative skill advantages. Exploiting within family between-subject variation in skills, we show that comparative advantages in math of parents are significantly linked to those of their children. A causal interpretation follows
from a novel IV estimation that isolates variation in parent skill advantages due to their teacher and classroom peer quality. Finally, we show the strong influence of family skill transmission on children’s choices of STEM fields.

Original language	English
Place of Publication	Bonn
Publisher	IZA
Number of pages	75
Publication status	Published - May 2023

Publication series

Series	IZA Discussion Paper Series
Number	16117

JEL classifications

i24 - Education and Inequality
j12 - "Marriage; Marital Dissolution; Family Structure; Domestic Abuse"
j24 - "Human Capital; Skills; Occupational Choice; Labor Productivity"
j62 - "Job, Occupational, and Intergenerational Mobility; Promotion"

Keywords

intergenerational mobility
parent-child skill transmission
causality
STEM

Access to Document

https://docs.iza.org/dp16117.pdf

Cite this

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title = "Where do STEM graduates stem from? The intergenerational transmission of comparative skill advantages",

abstract = "The standard economic model of occupational choice following a basic Roy modelemphasizes individual selection and comparative advantage, but the sources of comparative advantage are not well understood. We employ a unique combination of Dutch survey and registry data that links math and language skills across generations and permits analysis of the intergenerational transmission of comparative skill advantages. Exploiting within family between-subject variation in skills, we show that comparative advantages in math of parents are significantly linked to those of their children. A causal interpretation followsfrom a novel IV estimation that isolates variation in parent skill advantages due to their teacher and classroom peer quality. Finally, we show the strong influence of family skill transmission on children{\textquoteright}s choices of STEM fields.",

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AU - Hanushek, Eric A.

AU - Jacobs, Babs

AU - Schwerdt, Guido

AU - van der Velden, Rolf

AU - Vermeulen, Stan

AU - Wiederhold, Simon

PY - 2023/5

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N2 - The standard economic model of occupational choice following a basic Roy modelemphasizes individual selection and comparative advantage, but the sources of comparative advantage are not well understood. We employ a unique combination of Dutch survey and registry data that links math and language skills across generations and permits analysis of the intergenerational transmission of comparative skill advantages. Exploiting within family between-subject variation in skills, we show that comparative advantages in math of parents are significantly linked to those of their children. A causal interpretation followsfrom a novel IV estimation that isolates variation in parent skill advantages due to their teacher and classroom peer quality. Finally, we show the strong influence of family skill transmission on children’s choices of STEM fields.

AB - The standard economic model of occupational choice following a basic Roy modelemphasizes individual selection and comparative advantage, but the sources of comparative advantage are not well understood. We employ a unique combination of Dutch survey and registry data that links math and language skills across generations and permits analysis of the intergenerational transmission of comparative skill advantages. Exploiting within family between-subject variation in skills, we show that comparative advantages in math of parents are significantly linked to those of their children. A causal interpretation followsfrom a novel IV estimation that isolates variation in parent skill advantages due to their teacher and classroom peer quality. Finally, we show the strong influence of family skill transmission on children’s choices of STEM fields.

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