Common economic analysis of the returns to education fails to capture the critical secondary beneficial impacts of parental education on the health outcomes of future generations. These positive effects are systematically undercounted in the cost-benefit analysis of Australias investment in education. This is the first project to exploit unique Australian datasets and natural experiments to identify in causal analyses the magnitude and the effective mechanisms through which parental education affect the health outcomes of the second generation. This projectaims to contribute to the sparse international literature, and to provide direct policy recommendations to improve the health and wellbeing of this and future generations.