The Relationship between Intergenerational Educational Mobility and Public Spending: Evidence from Canada

Abstract

Using data from the General Social Survey-2011 (Family), this study examines intergenerational educational mobility in Canada, with a particular focus on the role of public educational spending. This study finds that children's education is significantly correlated with father's education. However, the strength of the correlation declines with an increase in provincial educational spending. In other words, public educational spending positively affects intergenerational educational mobility. To check the robustness of these results, the study compares son's and daughter's education with father's education. Furthermore, this study also compares children's education with both father's and mother's education. In all cases, the results show that the intergenerational educational elasticity declines with an increase in provincial educational spending. This result has important policy implications, particularly at a time when Canada is concerned about growing income inequality.