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Cognitive skills, non-cognitive skills, and family background: Evidence from sibling correlations

This paper estimates sibling correlations in cognitive and non-cognitive skills to evaluate the importance of family background for skill formation. Based on a large representative German dataset including IQ test scores and measures of non-cognitive skills, a restricted maximum likelihood model ind...

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Bibliographic Details
Published in:Journal of population economics 2017-02, Vol.30 (2), p.591-620
Main Authors: Anger, Silke, Schnitzlein, Daniel D
Format: Article
Language:English
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Summary:This paper estimates sibling correlations in cognitive and non-cognitive skills to evaluate the importance of family background for skill formation. Based on a large representative German dataset including IQ test scores and measures of non-cognitive skills, a restricted maximum likelihood model indicates a strong relationship between family background and skill formation. Sibling correlations in non-cognitive skills range from 0.22 to 0.46; therefore, at least one-fifth of the variance in these skills results from shared sibling-related factors. Sibling correlations in cognitive skills are higher than 0.50; therefore, more than half of the inequality in cognition can be explained by shared family background. Comparing these findings with those in the intergenerational skill transmission literature suggests that intergenerational correlations capture only part of the influence of family on children’s cognitive and non-cognitive skills, as confirmed by decomposition analyses and in line with previous findings on educational and income mobility.
ISSN:0176-1714
0933-1433
1432-1475
1432-1475
DOI:10.1007/s00148-016-0625-9