How Stressful is Retirement? New Evidence from a Longitudinal, Fixed-effects Analysis

The purpose of this paper is to investigate the effect of retirement on psychological well-being. Findings from previous research in this field are inconsistent, as both positive, negative, and sometimes no effect of retirement on well-being is reported. In the paper we suggest that the divergent results may arise from the mixing of cross-sectional and longitudinal studies, problems with the size and quality of existing longitudinal data, and the statistical methods used to analyze the impact of retirement on well-being. In the paper we propose to deploy the fixed-effect estimator whichs provides consistent estimates of the effect of retirement on well-being, even when retirement is correlated with other observed and unobserved explanatory variables. Using a large (N = 4,634) and nationally representative panel data set with elderly Danish respondents, we find that retirement does not have any significant effect on well-being. When estimating separate model for men and women we find indications (p = .06) that men experience a decline in well-being as a consequence of retirement, while women are unaffected by retirement. Our findings for men would substantiate the crisis theory perspective that holds that retirement implies a loss of important social roles associated with labor market participation. Several suggestions for future research are also discussed.retirement; psychological well-being; gender; methodology; fixed-effect model

Relative Risk Aversion and Social Reproduction in Intergenerational Educational Attainment: Application of a Dynamic Discrete Choice Mode

The theory of Relative Risk Aversion (RRA) claims that educational decision-making is ultimately motivated by the individual’s desire to avoid downward social class mobility, and that this desire is stronger than the desire to pursue upward mobility. This paper implements a dynamic programming model which tests the central behavioral assumption in the RRA theory stating that (1) individuals are forward-looking when choosing education and (2) that the RRA mechanism comprises an important component in the educational decision-making process. Using data from the Danish Youth Longitudinal Study, we find strong evidence of RRA in educational decision-making over and above the effect of traditional social background variables.

Intergenerational Educational Mobility in the Comprehensive Danish Welfare State: Testing the Primacy of Non-monetary Social Origin Effects

The aim of this paper is investigate the extent to which monetary and non-monetary social background factors explain intergenerational educational attainment in Denmark. The main hypothesis tested is that non-monetary social background factors (cultural, social, and cognitive parental resources) are particularly important relative to economic factors within the institutional context of the comprehensive and highly redistributive Danish welfare state. Drawing on the notion of ‘capital’ by Pierre Bourdieu and a longitudinal Danish data set, we find that parental economic capital is of little importance in explaining educational outcomes, while different non-monetary social background resources, and especially cultural capital, are very important. Our findings then indicate that a particular Scandinavian institutional “mobility regime” may exist in which educational inequalities are predominantly generated by non-monetary forms of stratification. Several suggestions for future research are also discussed.intergenerational educational mobility; Denmark; mobility regimes; Bourdieu; forms of capital; mixed logit model; concomitant variables; confirmatory factor analysis

Selection Bias in Educational Transition Models: Theory and Empirical Evidence

Most studies which use Mare’s (1980, 1981) seminal model of educational transitions find that the effect of family background variables decreases across educational transitions. Cameron and Heckman (1998, 2001) have argued that this “waning coefficients” phenomenon might be driven by selection on unobserved variables. This paper, first, analyzes theoretically how selection on unobserved variables leads to waning coefficients and, second, illustrates empirically how selection affects estimates of the effect of family background variables on educational transitions. Our empirical analysis which uses data from the United States, United Kingdom, Denmark, and the Netherlands shows that the effect of family background variables on educational transitions is largely constant across transitions when we control for selection on unobserved variables. We also discuss the inherent difficulties in estimating educational transition models which deal effectively with selection on unobserved variables.

Which background factors matter more in intergenerational educational attainment: Social class, cultural capital or cognitive ability? A random effects approach

The sociological research literature on intergenerational educational attainment has highlighted three types of theoretical frameworks in explaining to what extent social origins influences people’s educational choices and possibilities. The three explanatory frameworks are 1) the socio-economic situation in the upbringing, 2) the “cultural capital” of the home (e.g. the level of education of the parents), and finally 3) the cognitive abilities of the individual. While all three explanatory frameworks have been shown empirically to be of significance in explaining people’s educational attainment when analyzed individually or two at a time, then only very few studies have simultaneously included all three frameworks and thus been able to present a coherent picture of the influence of social origins on educational attainment vis-à-vis individual ability. As a consequence very little knowledge exists on the relative significance of each of the three explanatory frameworks in explaining educational attainment when analyzed in a common, multivariate setting. Using data from the Danish Youth Longitudinal Panel Survey we analyse the relative significance of each of the proposed explanatory frameworks in explaining intergenerational educational attainment. By means of a multinomial random effects logit model we find father’s social class to be the strongest predictor of educational attainment followed by father’s level of education and finally cognitive ability. Furthermore, we find that the direct effect of father’s level of education is complex in that it to some extent is transmitted via cognitive ability and is more vulnerable to unobserved characteristics captured in the random effect.educational attainment; social mobility; multinomial logit regression; random effects model; Denmark

Unobserved Heterogeneity in the Binary Logit Model with Cross-Sectional Data and Short Panels: A Finite Mixture Approach

This paper proposes a new approach to dealing with unobserved heterogeneity in applied research using the binary logit model with cross-sectional data and short panels. Unobserved heterogeneity is particularly important in non-linear regression models such as the binary logit model because, unlike in linear regression models, estimates of the effects of observed independent variables are biased even when omitted independent variables are uncorrelated with the observed independent variables. We propose an extension of the binary logit model based on a finite mixture approach in which we conceptualize the unobserved heterogeneity via latent classes. Simulation results show that our approach leads to considerably less bias in the estimated effects of the independent variables than the standard logit model. Furthermore, because identification of the unobserved heterogeneity is weak when the researcher has cross-sectional rather than panel data, we propose a simple approach that fixes latent class weights and improves identification and estimation. Finally, we illustrate the applicability of our new approach using Canadian survey data on public support for redistribution.binary logit model; unobserved heterogeneity; latent classes; simulation

Cultural capital, teacher bias, and educational success:New evidence from monozygotic twins

In this paper we use new data on Danish monozygotic (MZ) twins to analyze the effect of cultural capital on educational success. We report three main findings. First, cultural capital has a positive direct effect on the likelihood of completing the college-bound track in Danish secondary education. Second, cultural capital leads teachers to form upwardly biased perceptions of children's academic ability, but only when their exposure to chil-dren's cultural capital is brief (as in oral and written exams) rather than long (as in grades awarded at the end of the school year). Third, we find that the positive direct effect of cultural capital on educational success is higher for children from high-socioeconomic status (SES) backgrounds than for those from low-SES backgrounds. This result suggests that high-SES children are more likely to be in schooling contexts that enable them to convert cultural capital into educational success

Cultural capital in context: Heterogeneous returns to cultural capital across schooling environments

AbstractThis paper tests two competing explanations of differences in returns to cultural capital across schooling environments: Cultural reproduction (cultural capital yields a higher returns in high-achieving environments than in low-achieving ones) and cultural mobility (cultural capital yields higher returns in low-achieving environments). Using multilevel mixture models, empirical results from analyses based on PISA data from three countries (Canada, Germany, and Sweden) show that returns to cultural capital tend to be higher in low-achieving schooling environments than in high-achieving ones. These results principally support the cultural mobility explanation and suggest that research should pay explicit attention to the institutional contexts in which cultural capital is converted into educational success