RT Journal Article
SR Electronic
T1 Ability, Parental Valuation of Education, and the High School Dropout Decision
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 906
OP 944
DO 10.3368/jhr.49.4.906
VO 49
IS 4
A1 Kelly Foley
A1 Giovanni Gallipoli
A1 David A. Green
YR 2014
UL http://jhr.uwpress.org/content/49/4/906.abstract
AB The probability of dropping out of high school varies considerably with parental education. Using a rich Canadian panel data set, we examine the channels determining this socioeconomic status effect. We estimate an extended version of Carneiro, Hansen and Heckman (2003)’s factor model, incorporating effects from cognitive and noncognitive ability and parental valuation of education (PVE). We find that cognitive ability and PVE have substantial impacts on dropping out and that parental education has little direct effect on dropping out after controlling for these factors. Our results confirm the importance of determinants of ability by age 15 but also indicate an important role for PVE during teenage years.