Measurement and Cross-Country Differences

S censuses samples to get more precise estimates they

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Unformatted text preview: he United States and the larger U.S censuses samples to get more precise estimates. They find that a 1-year increase in the education of either parent, arising from changes compulsory schooling laws, reduces the probability that a child repeats a grade by between 2 and 4 percentage points. Using a Canadian panel of administrative data that follows almost 60,000 fatherchild pairs from 1978 to 1999 and includes detailed information about the firms at which the father worked, Oreopoulos, Page and Stevens (2005) compare outcomes among individuals whose fathers experienced an employment shock to outcomes among individuals whose fathers did not. More specifically, their analysis is based on data from the Intergenerational Income Database (IID) of Statistics Canada, which links tax information on children born between 1963 and 1970 to data on their parents, for all years between 1978 and 1999. Source: Oreopoulos, Page and Stevens (2005) Table 3 Estimated Effects of Father's Displacement on Child's Earnings, Unemployment and Social Assistance Receipt (1) Dep var: Father's Log Income Residual (2) (3) (4) Age Adj. Log Earnings, 1995-99 Age Adj. Log Earnings, 1995-99 Age Adj. Log Earnings, 1995-99 Age Adj. Log Earnings, 1995-99 0.383 [0.023] 0.38 [0.024] -0.086 [0.040] -0.086 [0.039] -0.088 [0.039] 0.016 [0.012] 0.018 [0.012] 0.025 [0.008] 0.026 [0.008] No No No Yes No Yes No Yes 57,683 57,683 57,683 57,683 59,681 59,681 59,681 59,681 0.04 0.03 0.04 0.05 0.02 0.05 0 0.02 0.383 [0.023] Father Displaced With Initial Firm Characteristic Controls Observations R-squared (5) UI Receipt (6) (7) (8) UI Receipt Social Assistance Receipt Social Assistance Receipt -0.047 [0.007] -0.081 [0.004] Note: The dependent variable in columns 1-4 is child's log real earnings averaged between 1995 and 1999 after de-meaning by age. All regressions include fixed effects for birth cohort interacted with gender. The initial firm characteristic controls include fixed effects for regional location of firm (18 possible characters that identify provinces and smaller regions in large provinces) interacted with an indicator variable for whether the firm is in an urban or rural location. The controls also include...
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