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Nigel Tomes

Bio: Nigel Tomes is an academic researcher from University of Western Ontario. The author has contributed to research in topics: Wage & Labour supply. The author has an hindex of 16, co-authored 21 publications receiving 7342 citations. Previous affiliations of Nigel Tomes include National Bureau of Economic Research.

Papers
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Book
01 Jan 1985
TL;DR: In this paper, a model of the transmission of earnings, assets, and consumption from parents to descendants is developed, assuming utility-maximizing parents who are concerned about the welfare of their children.
Abstract: This paper develops a model of the transmission of earnings, assets, and consumption from parents to descendants. The model assumes utility-maximizing parents who are concerned about the welfare of...

2,032 citations

Journal ArticleDOI
TL;DR: The theory of inequality and intergenerational mobility presented in this paper assumes that each family maximizes a utility function spanning several generations, which depends on the consumption of parents and on the quantity and quality of their children.
Abstract: The theory of inequality and intergenerational mobility presented in this essay assumes that each family maximizes a utility function spanning several generations. Utility depends on the consumption of parents and on the quantity and quality of their children. The income of children is raised when they receive more human and nonhuman capital from their parents. Their income is also raised by their "endowment" of genetically determined race, ability, and other characteristics, family reputation and "connections," and knowledge, skills, and goals provided by their family environment. The fortunes of children are linked to their parents not only through investments but also through these endowments acquired from parents (and other family members). The equilibrium income of children is determined by their market and endowed luck, the own income and endowment of parents, and the two parameters, the degree of inheritability and the propensity to invest in children. If these parameters are both less than unity, ...

2,000 citations

Posted Content
TL;DR: This article showed that the observed quality income elasticity would be relatively high and the quantity elasticity relatively low and sometimes negative, even if the true "unobserved" income elasticities for quantity and quality were equal and of average value.
Abstract: This paper brings together and integrates social interactions and the special relation between quantity and quality. We are able to show that the observed quality income elasticity would be relatively high and the quantity elasticity relatively low and sometimes negative, even if the true "unobserved� income elasticities for quantity and quality were equal and of average value. Moreover, the observed quality elasticity would fall, and the observed quantity elasticity would rise, as parental income rose.

1,318 citations

Journal ArticleDOI
TL;DR: This article showed that the observed quality income elasticity would be relatively high and the quantity elasticity relatively low and sometimes negative, even if the true "unobserved" income elasticities for quantity and quality were equal and of average value.
Abstract: This paper brings together and integrates social interactions and the special relation between quantity and quality. We are able to show that the observed quality income elasticity would be relatively high and the quantity elasticity relatively low and sometimes negative, even if the true "unobserved� income elasticities for quantity and quality were equal and of average value. Moreover, the observed quality elasticity would fall, and the observed quantity elasticity would rise, as parental income rose.

1,161 citations

Journal ArticleDOI
TL;DR: The authors showed that the inheritance received by children is inversely related to both children's income and parental education, and that bequests are "compensatory" in that low-income children inherit more than their advantaged contemporaries.
Abstract: Unequal inheritance of material wealth is commonly considered a major cause of inequality in consumption. However, theoretical models of the intergenerational transmission of inequality by Becker, Blinder, and Ishikawa imply that unequal inheritance may either increase or reduce consumption inequality. Differences in inherited wealth resulting from unequal parental incomes increase inequality in recipients' consumption. However, unequal bequests caused by differences among families in the endowed ability of children or the costs of producing human capital are equalizing. Empirical results confirm these predictions: The inheritance received by children is inversely related to both children's income and parental education. Thus bequests are "compensatory" in that (ceteris paribus) low-income children inherit more than their advantaged contemporaries.

315 citations


Cited by
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Book ChapterDOI
TL;DR: The authors conducted a literature review on the impact of immigration on the economy of the host country focusing on the experience of the United States. The emphasis is on the period from the 1970s to the 1990s, and the author shows that research earlier in this period generally concluded that the economic effects of immigration were positive but that more recent research on later migrations have generally concluded immigration may be having an adverse effect on the earnings of native unskilled workers and be placing an increased burden on welfare programs.
Abstract: This literature review concerns the impact of immigration on the economy of the host country focusing on the experience of the United States. The emphasis is on the period from the 1970s to the 1990s. The author shows that research earlier in this period generally concluded that the economic effects of immigration were positive but that more recent research on later migrations have generally concluded that immigration may be having an adverse effect on the earnings of native unskilled workers and be placing an increased burden on welfare programs. The importance of such economic analysis for the formulation of appropriate migration policies is stressed.

2,514 citations

Book
01 Jan 1985
TL;DR: In this paper, a model of the transmission of earnings, assets, and consumption from parents to descendants is developed, assuming utility-maximizing parents who are concerned about the welfare of their children.
Abstract: This paper develops a model of the transmission of earnings, assets, and consumption from parents to descendants. The model assumes utility-maximizing parents who are concerned about the welfare of...

2,032 citations

Journal ArticleDOI
TL;DR: The theory of inequality and intergenerational mobility presented in this paper assumes that each family maximizes a utility function spanning several generations, which depends on the consumption of parents and on the quantity and quality of their children.
Abstract: The theory of inequality and intergenerational mobility presented in this essay assumes that each family maximizes a utility function spanning several generations. Utility depends on the consumption of parents and on the quantity and quality of their children. The income of children is raised when they receive more human and nonhuman capital from their parents. Their income is also raised by their "endowment" of genetically determined race, ability, and other characteristics, family reputation and "connections," and knowledge, skills, and goals provided by their family environment. The fortunes of children are linked to their parents not only through investments but also through these endowments acquired from parents (and other family members). The equilibrium income of children is determined by their market and endowed luck, the own income and endowment of parents, and the two parameters, the degree of inheritability and the propensity to invest in children. If these parameters are both less than unity, ...

2,000 citations

Posted Content
TL;DR: The authors review and critique the empirical literature on the links between investments in children and children's attainments, including educational attainment, fertility choices, and work-related outcomes such as earnings and welfare recipiency.
Abstract: We review and critique the empirical literature on the links between investments in children and children's attainments. The primary theoretical perspectives that dominate this literature form the framework for our review. The potential effects on children of family choices and neighborhood characteristics are emphasized. The outcomes of interest include educational attainment, fertility choices, and work-related outcomes such as earnings and welfare recipiency. A set of tables provides details on the existing empirical literature. The focus is on the economics literature, but relevant studies from other social sciences are included as well.

1,971 citations

Journal ArticleDOI
TL;DR: In this article, the authors use administrative records on the incomes of more than 40 million children and their parents to describe three features of intergenerational mobility in the United States: the joint distribution of parent and child income at the national level, the conditional expectation of child income given parent income, and the factors correlated with upward mobility.
Abstract: We use administrative records on the incomes of more than 40 million children and their parents to describe three features of intergenerational mobility in the United States. First, we characterize the joint distribution of parent and child income at the national level. The conditional expectation of child income given parent income is linear in percentile ranks. On average, a 10 percentile increase in parent income is associated with a 3.4 percentile increase in a child’s income. Second, intergenerational mobility varies substantially across areas within the U.S. For example, the probability that a child reaches the top quintile of the national income distribution starting from a family in the bottom quintile is 4.4% in Charlotte but 12.9% in San Jose. Third, we explore the factors correlated with upward mobility. High mobility areas have (1) less residential segregation, (2) less income inequality, (3) better primary schools, (4) greater social capital, and (5) greater family stability. While our descriptive analysis does not identify the causal mechanisms that determine upward mobility, the publicly available statistics on intergenerational mobility developed here can facilitate research on such mechanisms. The opinions expressed in this paper are those of the authors alone and do not necessarily reect

1,911 citations