ERIC Number: ED558178
Record Type: Non-Journal
Publication Date: 2014-Dec
Abstractor: As Provided
Reference Count: 24
House Price Growth When Children Are Teenagers: A Path to Higher Earnings? Working Paper No. 14-13
Cooper, Daniel; Luengo-Prado, María José
Federal Reserve Bank of Boston
This paper examines whether a rise in house prices that occurs immediately prior to children entering college has an impact on their earnings as adults. Higher house prices provide homeowners with additional funds to invest in their children's human capital. The results show that a 1 percentage point increase in house prices, when children are 17 years-old, results in roughly 0.9 percent "higher" annual income for the children of homeowners, and a 1.5 percent "lower" annual income for the children of renters. House price appreciation at age 17 also leads to higher college enrollment rates at age 19 and an increased likelihood of attendance at higher-ranked post-secondary institutions for the children of homeowners, as well as lower college enrollment rates for the children of renters. This Working Paper also includes the following appendices: (1) Data Construction and Summary Statistics; (2) House Prices and Rents; (3) Controlling for Selection into Homeownership; and (4) Intergenerational Mobility.
Descriptors: Housing, Costs, Children, College Attendance, Salaries, Wages, Adults, Ownership, Human Capital, Late Adolescents, College Bound Students, Income, Enrollment Trends, Probability, Economic Climate, Regression (Statistics), Family Income, Credit (Finance), Tuition
Federal Reserve Bank of Boston. P.O. Box 55882, Boston, MA 02205. Tel: 617-973-3000; Tel: 617-973-3397; e-mail: email@example.com; Web site: http://www.bos.frb.org/
Publication Type: Reports - Evaluative
Education Level: Higher Education; Postsecondary Education; Secondary Education; High Schools
Authoring Institution: Federal Reserve Bank of Boston, MA.