Equal opportunity for all? Parental economic resources and children's educational attainment

We investigate the roles of parents' economic resources in children's educational attainment with special attention to assets. Using data from the Panel Study of Income Dynamics, we find that parents' liquid assets have significantly positive associations with years of schooling, high school graduation, and college attendance, but not on college graduation. The results also show a complicated relationship between negative liquid assets and educational attainment: children from negative liquid asset households have a higher chance of finishing high school but a lower chance of graduating college than those from zero liquid asset households. Children from high liquid asset households are more likely to graduate high school and enter college. Findings indicate that we should consider assets when seeking to understand educational mobility. It is also suggested that asset building policies for children's education may expand children's opportunity to get higher level of education.