Direct and Indirect Effects of Parental Education Level on the Demand for Higher Education

This paper investigates empirically the impact of parental education level, family income, scholastic ability, and expectations on earnings and employment on the demand for higher education in the Netherlands. In theory the factors mentioned are important determinants of educational choice. The Wald...

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Bibliographic Details
Published in:The Journal of human resources 1988-07, Vol.23 (3), p.356-371
Main Authors: Kodde, David A., Jozef M. M. Ritzen
Format: Article
Language:English
Subjects:
Academic aptitude
Critical values
Economic models
Educational demand
Educational levels
Higher education
Human capital
Null hypothesis
Parental education
Secondary schools
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Summary:This paper investigates empirically the impact of parental education level, family income, scholastic ability, and expectations on earnings and employment on the demand for higher education in the Netherlands. In theory the factors mentioned are important determinants of educational choice. The Wald or distance test is used to discriminate between direct and indirect effects of the parental education level and other background variables on the demand for higher education. We find that family income, ability, and expectations have a direct effect on earnings and employment, while the parental education level exerts indirect effects only.
ISSN:0022-166X
1548-8004
DOI:10.2307/145834