Abstract
The paper examines the role of education as a causal channel through which growing up poor affects the economic outcomes in adulthood in the European Union. We apply a potential outcomes approach to quantify those effects and we provide a sensitivity analysis on possible unobserved confounders, such as child ability. Our estimates indicate that being poor in childhood significantly decreases the level of income in adulthood and increases the average probability of being poor. Moreover, our results reveal a significant role of education in this inter-generational transmission. These results are particularly relevant for Mediterranean and central and eastern European countries.
Original language | English |
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Pages (from-to) | 37-68 |
Number of pages | 32 |
Journal | Journal of the Royal Statistical Society. Series A: Statistics in Society |
Volume | 182 |
Issue number | 1 |
DOIs | |
Publication status | Published - 1 Jan 2019 |
Keywords
- Causal mediation analysis
- Education
- Intergenerational transmission
- Potential outcome
- Poverty