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| The Impact of Parental Homeownership on Children's Outcomes during Early Adulthood |
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Volume 18, Issue 4
2007
George Galster, Dave E. Marcotte, Marvin B. Mandell, Hal Wolman, and Nancy Augustine
Whether children benef it from being raised in a home owned by their parents has important policy implications and has been the topic of much scholarly debate. We match Panel Study of Income Dynamics data with census
tract data to examine the impact of childhood experiences on adult outcomes for children followed over three decades. This allows us to document a wide range of characteristics.
For children born between 1968 and 1974, we analyze data on their f irst 18 years and also various outcomes when they are between 25 and 31 in 1999. We control for a comprehensive set of observable parental characteristics and develop a method to control for unobservable child characteristics together with an instrumental variable for the remaining selection problems. Parental homeownership status and children’s college education and homeownership status are closely related, although the former is generated partially
by the greater residential stability associated with homeownership.
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