New Evidence using Danish Twins and their Children
Understanding the causal relation between mothers and fathers schooling and child development is important to create polices raising schooling level. We use unique Danish administrative data with information on identical twins and their children to estimate the causal effect of parental schooling on both short-run and long-run outcomes. By applying within twin fixed effect techniques we are able to take heritable endowments transmitted from parent to child into account and as an important reference point to the general population we do a parallel study on a sample of same sex DZ twins. We find that endowments counts for a substantial part of the correlation between parents' schooling on the devel-opment of the child. Father's schooling increases children's length of schooling, but decreases 9th grade academic achievement. Mother's schooling increases short run outcomes and the probability of high school completion. We find substantial gender differences, but no stronger link between parents and children of same gender.