Does Family Structure Affect Children's Educational Outcomes?

Donna K. Ginther, Federal Reserve Bank of Atlanta
Robert A. Pollak, Washington University in St. Louis

In this paper we estimate a statistical model of intra-household allocation of human capital that controls for family structure and uses data from the NLSY79, NLSY79-Child, and PSID. Our analysis begins with estimates of the effect of family structure on children's educational outcomes assuming family structure is exogenously assigned. Next, we exploit the sibling structure in the data to control for unobserved heterogeneity across families using family fixed effects. Finally, we compare educational outcomes for stepchildren and their half-siblings in the same blended family who are the biological children of both parents. As additional variables are added to the specification, family structure effects attenuate. Using fixed effects estimates, we find that family structure effects are statistically insignificant. Comparing half-siblings in our data, we find no difference in educational outcomes as a function of family structure.