2022 Klein lecture. Parental education and invention: the Finnish enigma

Aghion, Philippe ORCID: 0000-0002-9019-1677, Akcigit, Ufuk, Hyytinen, Ari and Toivanen, Otto (2023) 2022 Klein lecture. Parental education and invention: the Finnish enigma. International Economic Review, 64 (2). 453 - 490. ISSN 0020-6598

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Abstract

Why is invention strongly positively correlated with parental income not only in the United States but also in Finland, which displays low income inequality and high social mobility? Using data on 1.45 M Finnish individuals and their parents, we find the following: (i) the positive association between parental income and off-spring probability of inventing is greatly reduced when controlling for parental education; (ii) instrumenting for the parents having an MSc degree using distance to nearest university reveals a large causal effect of parental education on offspring probability of inventing; and (iii) the causal effect of parental education has been markedly weakened by the introduction in the early 1970s of a comprehensive schooling reform.

Item Type:	Article
Official URL:	https://onlinelibrary.wiley.com/journal/14682354
Additional Information:	© 2023 The Authors
Divisions:	Economics
Subjects:	H Social Sciences > HB Economic Theory L Education
Date Deposited:	24 Apr 2023 13:21
Last Modified:	18 Nov 2024 20:24
URI:	http://eprints.lse.ac.uk/id/eprint/118708

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