TY - RPRT AU - Mendolia, Silvia AU - Siminski, Peter TI - Does Family Background Affect Earnings through Education? A Generalised Approach to Mediation Analysis PY - 2016/Apr/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 9917 UR - https://www.iza.org/publications/dp9917 AB - We seek to quantify the role of education as a mechanism through which family background affects earnings. To this end, we propose a generalisation of statistical 'mediation analysis'. In our approach, the treatment and mediator can be multidimensional. This allows us to directly and flexibly account for a range of background characteristics which affect child earnings through the pathway of education and through other mechanisms. The results suggest that educational attainment explains 24%-39% of the overall family background effect on earnings in Australia. The mediating role of education seems to be larger for Australia than for the UK. KW - equality of opportunity KW - intergenerational mobility KW - mediation analysis ER -