You are here:

Money changes everything? Education and regional deprivation revisited
ARTICLE

, International Security and Development Center, Germany ; , Faculty of Management and Economics, Germany

Economics of Education Review Volume 48, Number 1, ISSN 0272-7757 Publisher: Elsevier Ltd

Abstract

A long line of literature has sought to explain the relationship between regional deprivation and education outcomes. To date, however, this literature has struggled to advance notions of deprivation beyond the purely economic. Focus has fallen on attempts to isolate causality using experimental and quasi-experimental approaches, yet the transfer mechanism of financial deprivation remains unclear and under-explained. Employing a multi-domain deprivation measure for Northern Ireland, this paper revisits the question and confirms a negative relationship between regional deprivation and education outcomes. Using random effects and error-component 2SLS models and employing the spatial variation of historical violence as an instrument we find no unique effect of financial deprivation over and above the effect of other deprivation metrics. This confirms the limitations of using wealth as a proxy for deprivation, whilst suggesting that policies focusing only on income redistribution will be unsuccessful in improving educational outcomes.

Citation

Ferguson, N.T.N. & Michaelsen, M.M. (2015). Money changes everything? Education and regional deprivation revisited. Economics of Education Review, 48(1), 129-147. Elsevier Ltd. Retrieved November 29, 2023 from .

This record was imported from Economics of Education Review on March 1, 2019. Economics of Education Review is a publication of Elsevier.

Full text is availabe on Science Direct: http://dx.doi.org/10.1016/j.econedurev.2015.01.009

Keywords

References

View References & Citations Map
  1. Andersson, E., & Subramanian, S.V. (2006). Explorations of neighbourhood and educational outcomes for young Swedes. Urban Studies, 43(11), pp. 2013-2025.
  2. Angrist, J.D., & Pischke, J.-S. (2008). Mostly harmless econometrics: an empiricist’s companion.
  3. Balestra, P., & Varadharajan-Krishnakumar, J. (1987). Full Information estimations of a system of simultaneous equations with error component structure. Econometric Theory, 3(02), pp. 223-246.
  4. Baltagi, B. (2008). Econometric analysis of panel data.
  5. Baltagi, B.H. (1981). Simultaneous equations with error components. Journal of Econometrics, 17(2), pp. 189-200.
  6. Baltagi, B.H., & Liu, L. (2009). A note on the application of EC2SLS and EC3SLS estimators in panel data models.
  7. Barnes, J., Belsky, J., Broomfield, K.A., & Melhuish, E. (2006). Neourhood deprivation, school disorder and academic achievement in primary schools in deprived communities in England. International Journal of Behavioral Development, 30(2), pp. 127-136.
  8. Bauer, T.K., Fertig, M., & Vorell, M. (2011). Neighborhood effects and individual unemployment.
  9. Bayer, P., & Ross, S.L. (2006). Identifying individual and group effects in the presence of sorting: A neighborhood effects application.
  10. Bayer, P., Ross, S.L., & Topa, G. (2008). Place of work and place of residence: informal hiring networks and labor market outcomes. Journal of Political Economy, 116(6), pp. 1150-1196.
  11. BBC Learning (2013). Parents: Support your child’s education. Accessed 12.01.13.
  12. Becker, G. (1993). Human capital: a theoretical and empirical analysis, with special reference to education.
  13. Besely, T., & Mueller, H. (2012). Estimating the peace dividend: the impact of violence on house prices in Northern Ireland. American Economic Review, 102(2), pp. 810-833.
  14. Black, S.E., Devereux, P.J., & Salvanes, K.G. (2005). Why the apple doesn’t fall far: Understanding intergenerational transmission of human capital. American Economic Review, 95(1), pp. 437-449.
  15. Blau, D.M. (1999). The effect of income on child development. The Review of Economics and Statistics, 81(2), pp. 261-276.
  16. Bratti, M., & Mendola, M. (2014). Parental health and child schooling. Journal of Health Economics, 35, pp. 94-108. Available online: http://dx.doi.org/10.1016/j.jhealeco.2014.02.006.
  17. Brueck, T., Maio, M.D., & Miaari, S.H. (2013). The effect of conflict on students’ academic achievement: evidence from the second intifada.
  18. Chamarbagwala, R., & Moran, H.E. (2011). The human capital consequences of civil war: Evidence from Guatemala. Journal of Development Economics, 94(1), pp. 41-61.
  19. Chen, S.H., Chen, Y.-C., & Liu, J.-T. (2009). The impact of unexpected maternal death on education: First evidence from three national administrative data links. The American Economic Review, 99(2), pp. 149-153.
  20. Choi, H. (2011). Parents’ health and adult children’s subsequent working status: A perspective of intergenerational transfer and time allocation. Journal of Family and Economic Issues, 32(3), pp. 493-507.
  21. Clarke, P., Crawford, C., Steele, F., & Vignoles, A. (2010). The choice between fixed and random effects models: some considerations for educational research.
  22. Coleman, J.S. (1988). Social capital in the creation of human capital. The American Journal of Sociology, 94, Supplement: Organizations and Institutions: Sociological and Economic Approaches to the Analysis of Social Structure, pp. 95-120.
  23. Cremer, H., Pestieau, P., & Rochet, J.-C. (2003). Capital income taxation when inherited wealth is not observable. Journal of Public Economics, 87(11), pp. 2475-2490.
  24. Currie, J., & Moretti, E. (2003). Mother’s education and the intergenerational transmission of human capital: evidence from college openings. The Quarterly Journal of Economics, 18(4), pp. 1495-1532.
  25. Cutler, D., & Glaeser, E.L. (1997). Are Ghettos good or bad?. The Quarterly Journal of Economics, 112(3), pp. 827-872.
  26. Davis-Kean, P.E. (2005). The influence of parent education and family income on child achievement: the indirect role of parental expectations and the home environment. Journal of Family Psychology, 19(2), pp. 294-304.
  27. Dorsett, R. (2013). The effect of the troubles on GDP in Northern Ireland. European Journal of Political Economy, 29, pp. 119-133.
  28. Duncan, G.J., Morris, P.A., & Rodrigues, C. (2011). Does money really matter? Estimating impacts of family income on young children’s achievement with data from random-assignment experiments. Developmental Psychology, 47(5), pp. 1263-1279.
  29. Durlauf, S.N. (1996). A theory of persistent income inequality. Journal of Economic Growth, 1(1), pp. 75-93.
  30. Fenton, A. (2013). Small-area measures of income poverty.
  31. Fitzduff, M., & O’Hagan, L. (2009). The Northern Ireland troubles. Available online: http://cain.ulst.ac.uk/othelem/incorepaper09.htm.
  32. Garner, C.L., & Raudenbush, S.W. (1991). Neighborhood effects on educational attainment: A multilevel analysis. Sociology of Education, 64(4), pp. 251-262.
  33. Gertler, P., Levine, D.I., & Ames, M. (2004). Schooling and parental death. The Review of Economics and Statistics, 86(1), pp. 211-225.
  34. Gibbons, S. (2002). Geography, resources and primary school performance.
  35. Gibbons, S., Machin, S., & Silva, O. (2008). Valuing school quality using boundary discontinuity regressions.
  36. Goux, D., & Maurin, E. (2007). Close neighbours matter: Neighbouhood effects on early performance at school. Economic Journal, 117(523), pp. 1193-1215.
  37. Gradstein, M., & Justman, M. (2000). Human capital, social capital, and public schooling. European Economic Review, 44(4), pp. 879-890.
  38. Griliches, Z., & Mason, W.M. (1972). Education, income, and ability. Journal of Political Economy, 80(3), pp. S74-S103.
  39. Haisken-DeNew, J., & Sinning, M. (2010). Social deprivation of immigrants in Germany. Review of Income and Wealth, 56(4), pp. 715-733.
  40. Harwell, M., & LeBeau, B. (2010). Student eligibility for a free lunch as an SES measure in education research. Educational Researcher, 39(2), pp. 120-131.
  41. Haveman, R., & Wolfe, B. (1995). The determinants of children’s attainments: A review of methods and findings. Journal of Economic Literature, 33(4), pp. 1829-1878.
  42. Holmlund, H., Lindahl, M., & Plug, E. (2011). The causal effect of parents’ schooling on children’s schooling: A comparison of estimation methods. Journal of Economic Literature, 49(3), pp. 615-651.
  43. Honaker, J. (2010). Unemployment and violence in Northern Ireland: A missing data model for ecological inference.
  44. Jacob, B. (2004). Public housing, housing vouchers and student achievement: evidence from public housing demolitions in Chicago. American Economic Review, 94(1), pp. 233-258.
  45. Kahanec, M., & Yuksel, M. (2010). Intergenerational transfer of human capital under post-war distress: The displaced and the Roma in the Former Yugoslavia.
  46. Kibris, A. (2014). The conflict trap revisited: Civil conflict and educational achievement. Journal of Conflict Resolution, online, pp. 1-26.
  47. Løken, K.V. (2010). Family income and children’s education: Using the Norwegian oil boom as a natural experiment. Labour Economics, 17(1), pp. 118-129.
  48. Løken, K.V., Mogstad, M., & Wiswall, M. (2012). What linear estimators miss: The effects of family income on child outcomes. American Economic Journal: Applied Economics, 4(2), pp. 1-35.
  49. Lupton, R. (2001). Places Apart? The initial report of CASEs areas study.
  50. McKeown, M. (2009). Post-mortem: An examination of the patterns of politically associated violence in Northern Ireland during the years 1969–2001 as reflected in the fatality figures for those years.
  51. McLoyd, V. (1990). The impact of economic hardship on black families and children: Psychological distress, parenting and socioemotional development. Child Development, 61, pp. 311-346.
  52. Milligan, K., & Stabile, M. (2008). Do child tax benefits affect the wellbeing of children? Evidence from Canadian child benefit expansions.
  53. Mincer, J. (1958). Investment in human capital and personal income distribution. Journal of Political Economy, 66(4), pp. 281-302.
  54. Misra, K., Grimes, P.W., & Rogers, K.E. (2013). The effects of community social capital on school performance: a spatial approach. The Journal of Socio-Economics, 42, pp. 106-111.
  55. NISRA (2005). Northern Ireland multiple deprivation measure 2005.http://www.nisra.gov.uk/deprivation/archive/NIMDM2005FullReport.pdf.
  56. Oreopoulos, P. (2003). The long-run consequences of living in a poor neighborhood. The Quarterly Journal of Economics, 118(4), pp. 1533-1575.
  57. Oreopoulos, P., Page, M., & Stevens, A. (2008). The intergenerational effect of work displacement. Journal of Labour Economics, 26(3), pp. 455-483.
  58. Schaffer, M. E. (2013). xtivreg3: Stata module to perform extended IV/2SLS, GMM and AC/HAC, LIML and k-class regression for panel data models.
  59. Sparkes, J. (1999). Schools, education and social exclusion.
  60. Sun, A., & Yao, Y. (2010). Health shocks and children’s school attainments in rural China. Economics of Education Review, 29(3), pp. 375-382.
  61. Sun, Y. (1999). The contextual effects of community social capital on academic performance. Social Science Research, 28(4), pp. 403-426.
  62. Sutton, M. (1994). Bear in mind these dead – An index of deaths from the conflict in Ireland 1969–1993.
  63. Swee, E.L. (2009). On war and schooling attainment: The case of Bosnia and Herzegovina.
  64. Tolley, G.S., & Olsen, E. (1971). The interdependence between income and education. Journal of Political Economy, 79(3), pp. 460-480.
  65. Ward, M.D., & Gleditsch, K.S. (2007). An introduction to spatial regression models in the social sciences.
  66. Weinhardt, F. (2010). Moving into the projects: Social housing neighbourhoods and school performance in England.
  67. Wooldridge, J.M. (2002). Econometric analysis of cross section and panel data.

These references have been extracted automatically and may have some errors. Signed in users can suggest corrections to these mistakes.

Suggest Corrections to References