Parental education not always linked to child’s later earnings, study suggests
Last updated 1/26/2012 1:39:00 PM
Parental education not always linked to child’s later earnings
Here's some good news for those who want to be successful through hard work and their own ability. Latest research suggests your parents' background doesn't necessarily affect your long-term financial success.
Academics from the University of Bath have investigated the link between the education of a parent with their child's earning ability.
They found that respondents in the early years of the labour market who were the children of well-educated parents enjoyed a greater increase in their earnings than those whose parents who had spent fewer years in education. But they found that over time this advantage declined, and the worker's wages reflected their true ability, irrespective of their parent's education.
Professor John Hudson said: "Looking at this data we found that if an individual's parents both have 15 years of education, then their wages peak after 16 years of experience when they are around half of what they can expect to earn in a lifetime and a quarter more than someone whose parents both have only ten years of education between them.
"When workers with parents with less years of education reached 35 year of working experience they were just as likely to earn the same as someone whose parents have had more years of education. We believe it is important because it delivers a different perspective on the head start some people get in their lives, just from having educated parents."
The study explored these issues using data derived from the US National Longitudinal Survey of Young Men. It began in 1966 with 5525 males aged 14-24 and continued with follow up surveys through to 1981.