Erola, Pöyliö & Kilpi-Jakonen: Institutional Change and Parental Compensation in Intergenerational attainment. Presentation at TITA Annual Research Meeting, Turku 15.-16.9.2016.

1. Ins$tu$onal Change and
Parental Compensa$on in
Intergenera$onal a5ainment
Heta Pöyliö, Jani Erola & Elina Kilpi-Jakonen
+ some results from
Heta Pöyliö & johanna Kallio:
The impact of family and educa2on policies on
intergenera2onal transmission of socioeconomic
status in Europe

2. OED & Parental compensa$on
Weakening origin-educa$on (OE) associa$on
Decreasing returns - educa$onal infla$on (ED)
Parental compensa$on:
The increase of direct influence of parents (OD) (net of E)
E
– +/ –

3. Ins$tu$onal changes in
educa$on
§ MMI & EMI – Parents react to
ins$tu$onal changes (e.g. educa$onal
expansion)
§ Weakening OE linked with changes in
ins$tu$ons -> expect these to influence
OD
O
D
Ins$tu$on
-
+

4. Data & methods
ESS 2002-2010
Cohorts 1941-1980
25 Countries
Linear country fixed effect models
Decomposi$on

5. Individual level variables
ISEI
Child - cnt
Parent - highest
Educa$on (cnt 12 yrs)
Age & gender

6. -.03-.02-.010
yearsineducation(cnt)
1946- 1951- 1956- 1961- 1966- 1971- 1976-
Cohort*Origin
Note: Birth cohort 1941-45 as reference
Origin-Education association across cohorts
Weakening OE

7. Strenthening ED
-.10.1.2.3
ISEI(cnt)
1946- 1951- 1956- 1961- 1966- 1971- 1976-
Cohort*Education
Note: Birth cohort 1941-45 as reference
Education-Destination association across cohorts

8. 1: The origin-des2na2on
ssocia2on net of educa2on
as strengthened
-.1-.050.05
ISEI(cnt)
1946- 1951- 1956- 1961- 1966- 1971-
Cohort*origin
gross OD net OD
Note: Birth cohort 1941-45 as reference
Origin-Destination association across cohorts

9. Variables for ins$tu$onal
change
Matched with equivalent 5-year birth cohorts within
countries
School leaving age
Fees in ter$ary educa$on
The propor$on completed ter$ary educa$on
Removal of educa$onal dead-ends

10. Methods
Linear country fixed effect models
Decomposi$on

11. OE & Ins$tu$ons
Model 1 Model 2 Model 3 Model 4 Model 5
Birth cohort 0.378***
(0.018)
0.308***
(0.018)
0.378***
(0.018)
0.323***
(0.019)
0.305***
(0.018)
Parental ISEI (cnt.) 0.086***
(0.001)
0.084***
(0.001)
0.086***
(0.001)
0.086***
(0.001)
0.086***
(0.001)
Birth cohort # Parental ISEI
(cnt.)
-0.004***
(0.000)
-0.004***
(0.000)
-0.004***
(0.000)
-0.004***
(0.000)
-0.004***
(0.000)
Female -0.034
(0.022)
-0.038
(0.022)
-0.035
(0.022)
-0.036
(0.022)
-0.037
(0.022)
Age (cnt.) 0.017***
(0.004)
0.018***
(0.004)
0.017***
(0.004)
0.016***
(0.004)
0.017***
(0.004)
School leaving age 0.263***
(0.015)
Fees apply -0.067
(0.054)
Completed tertiary education
(%)
0.029***
(0.004)
1 reform on educational dead-
ends
0.551***
(0.041)
2 reforms 0.979***
(0.066)
Observations 105016 105016 105016 105016 105016

12. OE + ins2tu2ons
stitution Decomposition
95% conf.
interval
(proportion of
change in OE)
hool leaving age 0.122*** 0.096 0.148
es in tertiary education 0.001 -0.001 0.002
ompleted tertiary education (%) -0.002 -0.007 0.003
emoval of educational dead-ends 0.024** 0.008 0.040

13. OD + ins$tu$ons
Model 1 Model 2 Model 3 Model 4 Model 5 Mode
irth cohort 0.054
(0.085)
-0.796***
(0.074)
-0.668***
(0.076)
-0.795***
(0.074)
-0.853***
(0.079)
-0.693
(0.07
arental ISEI (cnt.) 0.341**
(0.006)
0.148***
(0.006)
0.151***
(0.006)
0.148***
(0.006)
0.149***
(0.006)
0.148
(0.00
irth cohort #
arental ISEI (cnt.)
-0.002
(0.002)
0.007***
(0.001)
0.006***
(0.001)
0.007***
(0.001)
0.007***
(0.001)
0.007
(0.00
emale -0.296**
(0.103)
-0.219*
(0.091)
-0.212*
(0.091)
-0.212*
(0.091)
-0.220*
(0.091)
-0.21
(0.09
ducation in years
nt.)
2.249***
(0.017)
2.256***
(0.017)
2.250***
(0.017)
2.249***
(0.017)
2.254
(0.01
chool leaving age -0.486***
(0.059)
ees apply 0.964***
(0.225)
ompleted tertiary
ducation (%)
0.030
(0.016)
reform on
ducational dead-
nds
-0.714
(0.16
reforms -1.514

14. OD + ins2tu2ons
titution Decomposition 95% conf. interval
(proportion of
change in OD)
hool leaving age 0.126*** 0.069 0.182
es in tertiary education 0.005 -0.002 0.012
mpleted tertiary education (%) 0.002 -0.002 0.005
moval of educational dead-ends 0.005 -0.022 0.033

15. Family ins$tu$ons?
Pöyliö and Kallio extended the test to
contrast ed. ins$tu$ons with family
ins$tu$ons
– the school leaving age
– pre-primary educa5on
– propor5on completed ter5ary educa5on
– maternity leave
– family allowances
birth cohorts 1956-1980

19. Sum of results
Parental compensa$on taking place in Europe
School leaving age and dead-end reforms explain
directly some of the weakening of OE
School leaving age has a strong direct influence on
the on parental compensa$on (net OD)

20. Influence of School leaving age
Older age – less dependent on parents in educa$onal decisions
(weaker OE)
BUT
Longer $me at home – more influence of parents on
occupa$on (values, preferences, social capital)

21. Younger cohorts (Pöyliö & Kallio)
Also the length of maternity leave ma5ered
Improved the chances of low SES family kids to reach
higher status