| Abstract: |
This study examines the effects of parental labor market activities on
children's education attainment. In contrast to the existing literature we
consider parental experiences until the children graduate from school. In
addition, the effects of the regional economic environment during teacher's
decision about the secondary school track are analyzed. Using data drawn from
the German Socio-Economic Panel an ordered probit estimator is used to model
children's education attainment. With respect to parental labor market
participation we find that father's full-time and mother's part-time
employment have significant positive effects on children's education
attainment. Furthermore, we obtain evidence that the regional GDP growth rate
and the regional unemployment rate when children are 10 years old are
significantly related to the education that these children ultimately achieve.
Our interpretation is that regional economic conditions affect
teachers'recommendations for the secondary school track, which are given
during the last year of primary school. The results reveal the less successful
parents are on the labor market, the lower the average education level of
their children. A second important conclusion is that children who live in
regions which experience a poor economic performance over a longer period are,
on average, less educated than children who live in more affluent regions. |