From home to labor market: Intergenerational influences on educational attainment and wage returns in Taiwan

This study utilizes linked data from the Taiwan Education Panel Survey (TEPS) and its follow-up survey (TEPS-B) to examine how family background is associated with educational attainment and early-career wage outcomes, while accounting for selection bias and individual heterogeneity. We construct a dual-channel framework distinguishing between a structural resource channel (parental education and family income) and a behavioral socialization channel (four distinct dimensions of parental involvement). The selection-adjusted estimates reveal a clear division of labor between these mechanisms across the lifecourse. Consistent with the socialization hypothesis, parental social involvement is associated with a higher likelihood of attending a selective public university, even after controlling for cognitive ability and personality traits. However, this socialization effect fades during the labor-market transition, operating instead through mediated educational credentials. In contrast, the resource channel exhibits long-term structural persistence: family income remains directly and positively associated with adult wages, even when accounting for complete educational profiles and individual attributes. Individual heterogeneity, including tested ability and independence, remains crucial throughout both stages. Overall, this study contributes new empirical evidence from Taiwan’s expanded higher education environment, demonstrating that while active parental socialization supports qualitative tracking within the school system, it cannot fully neutralize the direct occupational and networking advantages conferred by structural economic resources.