Intergenerational effects of parental human capital on children: Evidence from Malawi

We investigate the intergenerational transmission of parental education on children's outcomes in Malawi. Using the variations induced by the Free Primary Education reform implemented in 1994, we find that an extra year of mothers’ and fathers’ schooling increases children's schooling years by 0.19 and 0.16 years, respectively. Children with more educated mothers are less likely to work, while no such evidence is found for children with more educated fathers. We examine an array of potential mechanisms, including assortative mating, reduced fertility, and improvements in family resources. We find that spousal quality, fertility response, and a narrower age gap between spouses may be the underlying channels for the intergenerational transmission of education.