How long is the shadow? The relationships of family background to selected adult outcomes: results from PIAAC

Abstract

BackgroundOngoing interest in the relationships between family background and adult outcomes is motivated by concerns regarding the intergenerational transmission of advantage/disadvantage. Currently all countries are far from achieving the ideal that all individuals, irrespective of their starting points or their demographic characteristics, are able to accumulate sufficient human capital so that they can achieve success in the workplace and fulfill their responsibilities as family members and as citizens. This study quantifies the length of the shadow cast by family background and personal characteristics on an individual’s prospects in the labor market. It also examines the extent to which these relationships are mediated by factors more proximal to labor market entry.MethodsThis study uses data for 21 OECD countries from the first round of PIAAC. It employs descriptive statistics, correlations and logistic regression. Two dichotomous variables are derived from each country’s national annual income distribution: Q1 = 1 if the individual’s income is in the first (lower) quartile and Q4 = 1 if the individual works full-time and whose income is in the fourth (upper) quartile. For each country, a nested sequence of logistic regression models are fit to ascertain the role of more proximal factors in mediating the impact of family background and demographic characteristics on these labor market outcomes.ResultsThe patterns of relationships are qualitatively similar across the 21 countries, although the estimated associations vary greatly in strength. Parental education accounts for substantial proportions of the variation in respondents’ Educational Attainment and Cognitive Skills. In most countries, children born to parents with lower levels of education have less than a fifty–fifty chance of exceeding that level. Family background is strongly associated with income, but the relationship is largely mediated by Educational Attainment and Cognitive Skills. Females and younger individuals have much higher odds of being in the lower quartile and much lower odds of reaching the upper quartile, even after adjusting for other variables. The magnitudes of these adjusted odds are concerning.ConclusionsFamily background and gender cast a long shadow on individuals’ life prospects. Countries vary greatly in their success in mitigating these disadvantages. Formulating effective policies will depend on understanding a complex set of dynamics that surely differ among countries.