Changes in the wage structure, family income, and children's education

We exploit the changes in the distribution of family income to estimate the effect of parental resources on college education. Our strategy exploits t he fact that families at the bottom of the income distribution were much po orer in the 1990s than they were in the 1970s, while the opposite is true f or families in the top quartile of the distribution. Our estimates suggest large effects of family income on enrollments. For example, we find that a 10 percent increase in family income is associated with a 1.4 percent incre ase in the probability of attending a four-year college. (C) 2001 Elsevier Science B,V. All rights reserved.