Family structure transitions and educational outcomes: Explaining heterogeneity by parental education in Germany.

Recent research has documented that the effect of parental separation on children's educational outcomes depends on socioeconomic background. Yet, parental separation could lead to a stable single-parent family or to a further transition to a stepfamily. Little is known about how the effect of family structure transitions on educational outcomes depends on the education of parents and stepparents, and there has been limited empirical research into the mechanisms that explain heterogeneity in the effects of family transitions. Using longitudinal data from the German Socio-Economic Panel and models with entropy balancing and sibling fixed effects, I explore the heterogeneous effects of family transitions during early and middle childhood on academic secondary school track attendance, grades and aspirations. I find that family transitions only reduce the academic school track attendance among children of less educated parents living in stepfamilies or with a single mother after parental separation, and among children of highly educated fathers living in single-mother families. The mechanisms that partly explain these effects relate to reduced income and exposure to poverty after parental separation. The findings underscore the importance of considering the stepparent's educational level, indicating that the adverse consequences of parental separation on educational outcomes are mitigated when a highly educated stepfather becomes part of the family. Overall, these findings align more closely with the resource perspective than the family stability perspective.