New Evidence using Danish Twins and their Children
Understanding the causal relationship between parental schooling and child development is important to create polices raising schooling level. We use unique Danish administrative data with information on identical twins to estimate the effect of parental schooling on 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. We find OLS to be consistently upward biased due to endowments. Further, paternal schooling has no causal effect on infant and early childhood health but increases children's length of schooling; although the effect is small and not significant when fathers are born after WWII. Maternal schooling increases birth weight, the probability of high school completion and length of schooling, the latter, however, only when mothers are born after WWII.