The effects of parental and grandparental education on an individual’s primary income
Date
2026-06-05
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Abstract
"We sought to determine if, and by how much, a person’s primary income is affected by the educational attainment of their parents and grandparents. Education economists have found that the benefits of educational achievement persist throughout multiple generations. Furthermore, these benefits become important drivers of socioeconomic mobility (Dacuycuy, 2018; Blanden et al., 2023; Yuan et al., 2025). Using data from the Merged Family Income and Expenditure - Labor Force Survey (FIES-LFS) 2023 dataset, we utilized a modified Mincerian Wage Equation to estimate legacy effects on income through Parent-Child and Grandparent-Parent-Child connections, with a Two-Step Heckman Selection Model used to correct selection bias. We found that parental educational attainment is positively associated with a worker’s primary income. However, grandparental educational attainment has a weaker, less consistent direct relationship with a worker’s primary income. Yet, several significant grandparent-parent interactions imply that educational advantages may persist across multiple generations. These findings suggest that the economic returns to education are not only dependent on the worker, but also the educational history of that worker's family."
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Keywords
Parent, Grandparent, Education, Income