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We examine the impact of high school graduation on the probability individuals from welfare backgrounds use welfare themselves. Our data consists of administrative educational records for grade 12 students in a Canadian province linked with their own and their parents' welfare records. We address potential endogeneity problems by: 1) controlling for ability using past test scores; 2) using an instrument for graduation based on school principal fixed effects; and 3) using a Heckman- Singer type unobserved heterogeneity estimator. Graduation would reduce welfare receipt of dropoutsby ݠto 3/4. Effects are larger for individuals from troubled family backgrounds and low income neighbourhoods.
Authors
Research Fellow University of British Colombia
David is a Research Fellow of the IFS and a Professor in the Vancouver School of Economics at the University of British Columbia.
Michael B. Coelli
William P. Warburton
Working Paper details
- DOI
- 10.1920/wp.ifs.2004.0414
- Publisher
- IFS
Suggested citation
M, Coelli and D, Green and W, Warburton. (2004). Breaking the cycle? The effect of education on welfare receipt among children of welfare recipients. London: IFS. Available at: https://ifs.org.uk/publications/breaking-cycle-effect-education-welfare-receipt-among-children-welfare-recipients (accessed: 10 May 2024).
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