Identifying the effect of parental incomes on child outcomes is difficult due to the correlation of unobserved ability, education levels and income. Previous research has relied on the use of instrumental variables to identify the effect of a change in household income on the young adult...

In this paper we examine whether where one acquires their human capital matters in earnings regressions. We focus on a nationally-representative US data set and find that there is little difference between a measure of total years of education and measures for US and foreign-based years of...