교육을 통한 가구소득의 세대간 이전에 관한 연구

Abstract

A Study on the schooling and intergenerational transfer of household income

Eun Young Choi

Department of Economics, The Graduate School, Pukyong National University

Abstract This study aims to review empirically whether educational and income gaps are transferred between generations and to find the route to transfer educational and income gaps between generations. Furthermore, transfer of educational and income gaps between generations according to income brackets is analyzed empirically through standardized coefficients, and the difference between income brackets is looked into.

「Korea Labor and Income Panel Study (KLIPS)」 of the Korea Labor Institute is used as the data. This study constructs materials which merges data on parent generation investigated in the first and second years with one on children moved out in the 10th and 11th years focusing on the KLIPS. Based on the material, a series of casual links between parents' educational and income gaps and children's one are analyzed.

First, parents' educational levels affect children's levels directly and parents' income levels influence children's one. Furthermore, children's educational levels have an effect on their income levels. Accordingly, parents' educational levels seriously affect children's educational levels as well as parents' income levels, and children's education will influence their children's one, thus there is transfer between generations.

Second, parents' incomes are divided into the highest and lowest 20%s, and then degree of transfer between generations according to income brackets is assumed. As a result, parents' incomes show differences between classes to determine children's educational levels. In the low-income class, when parents' incomes increase, they invest children's education more elastically, and the higher educational levels of children family grow, the higher income levels of children one increase, but the growth is slight. That is to say that return on investment in children's education is low in the low-income class.

Third, elasticity of family income between generations and contribution degree of family income to education are calculated in the analysis on contribution degree of education to income elasticity. Parents' income levels affect children's education levels, and if children's educational levels contribute to children's income, transfer part can be disassembled using this link through the route of educational levels in the income elasticity between parents and children. Thus, the contribution degree of family income to education can be computed by contribution degree of parents' income to children's education and return on investment in education.

Fourth, when contribution degree of education to income elasticity in the highest and lowest 20% is assumed, the elasticity in the lowest 20% is the higher. The contribution degree of parents' incomes to children's education is larger in the lowest 20%, and return on investment in education is bigger in the highest 20%. The educational share of the highest is even greater than the lowest 20%.

Fifth, the aspects that incomes between generations are transferred according to income brackets are examined with tables and graphs. The rate of passage within generation is looked at through transfer line between parents and children. The rate of passage from parents to children is 31.1%.

This study finds educational and income transfer between generations empirically, thus dynamics of our society is grasped and hereditary position is checked. Furthermore, this is the first study to analyze data according to income brackets using the KLIPS. The study looks into which differences there are in the income transfer between generations through education of low-income and high-income classes empirically. Lastly, this is the empirical study that understands importance of role of education in income transfer between generations with estimated figures.

Keyword : Intergenerational transfer, Household Income, Educational gap, Income inequality , Human capital theory