Table 10

Labor Market Pathways of the Parental Schooling Effect (2SLS)

Dependent Variable
Participates in the Labor Force
(1)
Engaged in Paid Work
(2)
Employed in the Primary Sector
(3)
Employed in a High-skills Job
(4)
Panel A: Mothers Sample
Mother’s schooling−0.010
[0.012]
0.003
[0.006]
−0.049***
[0.013]
0.030***
[0.009]
F-test14.0410.5210.0910.09
p-value 0.002 0.006 0.006 0.006
Observations91,48068,451  67,026  67,026
Panel B: Fathers Sample
Father’s schooling−0.001
[0.002]
−0.003
[0.005]
−0.087***
[0.020]
0.079***
[0.017]
F-test25.1323.3122.7022.70
p-value 0.000 0.000 0.000 0.000
Observations50,02649,090  47,407  47,407
  • Notes: Each cell represents a separate regression; robust standard errors clustered by age in 1980 appear in brackets. All regressions include linear splines in parent age in 1980 (coefficients not shown), fixed effects for child ages 7–15 (omitted age is six), and a binary indicator for girls. The sample sizes in Columns 2, 3, and 4 are smaller than in Column 1 because they drop cases where occupation was coded unknown. An adult is regarded as employed in the primary sector if their main activity was recorded as agriculture or mining; they are regarded as employed in a high-skills job if their main occupation code was less than 500 in the census classification. Not all occupation codes greater than 500 fall in the primary sector. The instrument for parent schooling is the discontinuity at age 15 in 1980. The reported F-statistics refer to this excluded instrument. Statistical significance: *p < 0.10, **p < 0.05, ***p < 0.01.