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Erschienen in: Public Choice 1-2/2020

30.07.2019

Property confiscation and the intergenerational transmission of education in post-1948 Eastern Europe

verfasst von: Steven B. Caudill, Stephanie O. Crofton, João Ricardo Faria, Neela D. Manage, Franklin G. Mixon Jr., Mary Greer Simonton

Erschienen in: Public Choice | Ausgabe 1-2/2020

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Abstract

Using regression methods and propensity score matching applied to two different retrospective samples, this study finds evidence of a positive “property confiscation” effect on educational attainment. We use a 1993 survey of adults (aged 20–69) in the post-transition Eastern European countries of Bulgaria, the Czech Republic, Hungary, Poland and Slovakia. In countries experiencing the most private property losses, regression results indicate that years of schooling increase by about 0.19 for each member of an affected extended family (parents, maternal grandfathers, or paternal grandfathers). When all three sets of family members lost property, we find an increase in years of educational attainment of about 0.6. We also find an increase in the probability of post-high school education of about 0.02 for each extended family member whose property was confiscated. Those findings are confirmed using propensity score matching, which provides a larger and more pervasive positive confiscation effect. We also test our hypothesis using current and retrospective microeconomic panel data from Europe’s Survey of Health, Aging and Retirement (SHARE), a dataset that covers countries in Eastern and Western Europe. We again find that property confiscation leads to greater educational attainment in the children of the affected households. We apply propensity score matching to the data and find, again, positive and statistically significant evidence of a confiscation effect on years of educational attainment. Auxiliary work indicates a separate channel for property confiscation’s effects. Our explanation for the empirical results reported herein can be found in families’ ability to pay bribes to advance their children’s education.

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1
For example, Goldberger (1989) examines several models of intergenerational transmission. O’Brien and Jones (1999) use English data to establish factors at work in the intergenerational transmission of educational advantage. Using US data, Currie and Moretti (2003) examine four channels through which maternal education may affect the intergenerational transmission of human capital. Sacerdote (2005) examines the span of time required for the educational attainment of the descendants of slaves to rival the educational attainment of free black men and women. Using data for Greece, Daouli et al. (2010) find substantial educational mobility across generations. Pronzato (2012) examines the relative importance of paternal and maternal educational attainment using a sample of Norwegian twins. Riphahn and Trubswetter (2013) find that educational mobility in East Germany lags behind West Germany, even after unification. Using Swedish data, Lindahl et al. (2014) examine the intergenerational transmission of education across three generations. Also using Swedish data, Amin et al. (2015) ask whether the transmission mechanism is stronger for fathers than for mothers. Lastly, using a three-generation sample of US women during the twentieth century, Kroeger and Thompson (2016) find strong educational persistence, especially between grandmothers and granddaughters.
 
2
Our extension of Gandelman’s model, which forms the basis for our empirical work, is given in “Appendix 1”.
 
3
A brief history of property confiscations is provided in “Appendix B”.
 
4
The UCLA project is titled “Social Stratification in Eastern Europe after 1989: General Population Survey”, and can be found at http://​www.​library.​ucla.​edu/​social-science-data-archive/​sseehome. Using a questionnaire common to all five countries, national probability samples of approximately 5000 adults were surveyed in Bulgaria, the Czech Republic, Hungary and Slovakia in 1993. Data collection in Poland was delayed until 1994 and reduced to a sample of approximately 3500 owing to a lack of local funds. The survey’s design called for exactly comparable wording of questions, and variation in the response categories only when national variations in circumstances (e.g., different religious distributions) warranted other wording. Country-specific survey teams were free to add local questions at the questionnaire’s end. To ensure comparability, the questionnaire was translated into each local language and then retranslated into English; the retranslated versions were compared as a group by a multi-lingual team, and discrepancies in wording were corrected.
 
5
In our model, we include information on individuals’ motivation to seek education and individuals’ family environments, particularly parents’ educational background and parents’ position in society. The current investigation is, however, likely somewhat hindered by the possibility that the sample is biased owing to emigration from the countries taking place during the mid-twentieth century, before the UCLA project was initiated. The direction of the potential bias depends on whether people fleeing the countries had less property confiscated and were more highly educated than others who did not emigrate. As such, the bias that is likely present in the present sample can work for or against our hypothesis. We thank an anonymous referee for pointing this out.
 
6
This empirical approach to human capital investment follows Mixon and Salter (2008).
 
7
We interpret responses of “yes” to questions to imply that respondents incurred property losses, confiscation, or collectivization by newly communist-dominated governments since 1948.
 
8
Employment may be associated with more than one category.
 
9
According to Glenn (1995), education was very important to the communist parties in Eastern Europe, but primarily as a method of indoctrination and control.
 
10
For Bulgaria, the ethnic categories were Armenian, Bulgaro-mohamedani, Vlassi, Gagauzi, Greek, Jewish, Karachani, Macedonian, Russian, Turkish, Roma and other. For Czechoslovakia, the options were Czech, Slovak, Moravian, Silesian, Jewish, Polish, Hungarian, Russian, German, gypsy, Ukrainian and other. For Hungary, the options were German, Slovak, Jewish, Romanian, Serbian, Croatian, gypsy, Ukrainian and other. Lastly, for Poland, the options were German, Jewish, Ukrainian, Byelorussian, Lithuanian, Russian, Slovak and other.
 
11
A more complete set of results omitting only the ethnic dummy variables is provided in “Appendix 3”, Tables 13, 14, 15 and 16.
 
12
We split the sample in that way so our analysis is based only on individuals owning property who suffered no property losses after 1947.
 
13
All models in the empirical section are estimated by OLS. In studies of the intergenerational transmission concerns arise often about the confounding effects of parents’ education and income, which introduces the possibility of bias owing to the transmission of unmeasured ability. We believe that such possible biases are offset by the fact that education is widely available and nominally free and that we have no measure of parental income as we use retrospective data. Our model does include the number of the respondent’s brothers and sisters, which can be taken as a proxy for “cost” of education in a Beckerian sense. We likewise enter several independent variables that are proxies for unmeasured ability, such as our group of attitudinal variables: Ambit, Work, Net, Pol, Risk, Edu88, and Edu93.
 
14
The use of propensity score matching should help reduce any selectivity biases in the previous estimations (Caliendo and Kopeinig 2008).
 
15
The first wave of SHARE data collection started in 2004 and covered 11 European countries (Austria, Belgium, Denmark, France, Germany, Greece, Italy, Netherlands, Spain, Sweden and Switzerland). SHARE collected a wide range of information, including the respondent’s age, education, marital status, health, income, housing and financial assets. Wave 2 took place in 2006 and added two countries to the panel—Poland and the Czech Republic. Wave 3 (known as SHARELIFE) was conducted in 2008 and collected retrospective early-life data about the survey participants from the above 13 countries. SHARELIFE covers childhood health history, school performance, immunizations, detailed family information, such as occupation of the family bread-winner and household net worth, housing (location, amenities, ownership), number of siblings, and number of books in the house. We use Waves 1–3 of the SHARE data in our analysis. We also incorporate the data on combat operations compiled by Kesternich (2014), which combined locations of the combat operations with information about the region where the survey respondents lived during each year of the war. For additional information on the SHARE dataset, see Börsch-Supan, et al. (2013) and Börsch-Supan. (2018a, b, c).
 
16
We note some of the differences between the UCLA dataset and the SHARE dataset. First, the SHARE dataset is much larger and follows individuals throughout their lives, which should greatly reduce any biases associated with emigration that may be present in the UCLA data. As noted previously, the SHARE dataset also contains information on some Western European countries. The confiscation variable in the SHARE dataset is defined somewhat differently than in our earlier analysis. In particular, in the SHARE dataset the variable is Dispossession which is based on respondents’ answers to the following question, “There may be cases when individuals and their families are dispossessed of their property as a result of war or persecution. Were you or your family ever dispossessed of any property as a result of war or persecution?” Thus, no information is available as to which family member suffered the dispossession. The set of SHARE-based empirical results thus has more in common with those reported earlier in Table 2, which estimated the effects of Anyloss. The SHARE data used in this study do not contain information on family ethnicity, parents’ Communist Party membership status, or parents’ and grandfathers’ educational attainment. However, the dataset reports information sufficient for measuring family status; the large sample size allows us to include a set of birth year dummy variables not possible for the UCLA sample. We are confident that the explanatory variables available to us in the combined UCLA-SHARE dataset allow us to obtain alternative estimates of the impact of confiscation on educational attainment.
 
17
For example, respondents were asked the following question(s) about their position relative to other children at age 10 in terms of their mathematics (language) skills: Compared to other children in your class, did you perform in mathematics (your country’s language) much better, better, about the same, worse, or much worse than the average? We construct dummy variables from those responses.
 
18
The results for the full model including the birth year dummy variables and the country dummy variables are available upon request.
 
19
Government transfers, as a part of the property taxed or confiscated, can be added to the model but they do not change the qualitative results.
 
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Metadaten
Titel
Property confiscation and the intergenerational transmission of education in post-1948 Eastern Europe
verfasst von
Steven B. Caudill
Stephanie O. Crofton
João Ricardo Faria
Neela D. Manage
Franklin G. Mixon Jr.
Mary Greer Simonton
Publikationsdatum
30.07.2019
Verlag
Springer US
Erschienen in
Public Choice / Ausgabe 1-2/2020
Print ISSN: 0048-5829
Elektronische ISSN: 1573-7101
DOI
https://doi.org/10.1007/s11127-019-00698-0

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