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Thus policies alleviating income constraints to alter schooling decisions may not be as effective as policies which increase permanent income.
Second, we would have to assume that the child schooling decisions are not correlated with the decision of a migrant to send back remittances.
Although migration eases resource constraints and has positive effects on human capital accumulation in general, the prospect of migration does not alter schooling decisions.
In treating paternal income as endogenous, the elasticity of income on schooling decisions increases by a multiple of four for sons, but there is no effect on daughters.
In other words, compulsory schooling laws affect the schooling decisions of a subset of individuals who differ from representative agents, because they would not have otherwise pursued a higher level of education.
Heckman, et al. (2006) use data from the US NLSY1979 and show that locus of control and self-esteem affect schooling decisions, wages, occupational choices, and health-risky behaviours.
We use migrants' age as an instrumental variable because it is potentially exogenous to socio-economic conditions in Ecuador, thus not affecting schooling decisions but having an effect on the probability to remit.
This provides rich data that can be used to perform detailed analyses of household schooling decisions over time.
But these bigger mysteries make the grad-school decision harder.
To begin with, the grad-school decision is hard in all sorts of perfectly ordinary ways.
No 10 will have the final say on the Kent grammar school decision.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com