The heterogeneous effects of interactions between parent's education and MSA level college share on children's school enrollment

Abstract

This study finds that location matters more for children of parents with low educational attainment than for children of more educated parents. Specifically, children of parents without a high school diploma are statistically more likely to be enrolled in high schools or colleges in metropolitan statistical areas (MSAs) where the college graduate share is higher. The statistical relationship between a child's school enrollment and the MSA's college graduate share becomes weaker as their parents’ educational attainment increases. We also find that the least educated households are significantly less likely to be homeowners and are more likely to pay greater housing costs as a share of income in cities with higher college graduate shares, indicating that these households are paying a high price to live in high-skilled cities. Our results imply that the increasing lack of housing affordability in high-skilled cities makes it more difficult for households with less educational attainment to stay in or move to these places, contributing to intergenerational education inequality.