THE IMPACT OF SCHOOL FEES ON THE INTERGENERATIONAL TRANSMISSION OF EDUCATION

In this paper, we simultaneously analyze patterns of intergenerational mobility in education distinguishing the effects of parental education as an indicator of investment on children at the household level and the abolition of school fees as an indicator of investment in children at higher economic levels. Using a large data set of about 1 million children from 67 developing countries, we find that both intergenerational transmissions of education as well as access to free primary education significantly increase the educational outcomes of children. Our results also indicate a significant gradient in mothers’ education in the benefits of lifting school fees. This suggests that so initiatives that have made primary education free have not only raised the stock of total education in the economy, they have also improved the distribution since the gains have been largest for the least educated mothers whose children had the greatest starting disadvantage.