Journal ArticleDOI
Fortunate Sons: New Estimates of Intergenerational Mobility in the United States Using Social Security Earnings Data
TLDR
This article found that intergenerational mobility is significantly lower for families with little or no wealth, offering empirical support for theoretical models that predict differences due to borrowing constraints, suggesting that the United States is substantially less mobile than previous research indicated.Abstract:
Previous studies, relying on short-term averages of fathers' earnings, have estimated the intergenerational elasticity (IGE) in earnings to be approximately 0.4. Due to persistent transitory fluctuations, these estimates have been biased down by approximately 30% or more. Using administrative data containing the earnings histories of parents and children, the IGE is estimated to be around 0.6. This suggests that the United States is substantially less mobile than previous research indicated. Estimates of intergenerational mobility are significantly lower for families with little or no wealth, offering empirical support for theoretical models that predict differences due to borrowing constraints.read more
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Who's listening? Heterogeneous Impact of Social Interaction on Individuals' Stock Market Participation
Emma Zetterdahl,Jörgen Hellström +1 more
TL;DR: In this paper, the influence from family (parents and partners) and peer social interaction on individuals' stock market participation vary over different types of social interaction, such as friendship, family, and peer interaction.
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Measuring Intergenerational Income Mobility: A Synthesis of Approaches
TL;DR: In this article, the authors used income tax data from Australia to produce a comprehensive set of empirical estimates for each of 19 different mobility measures at both the national and regional level and provided a framework to highlight the key concepts and properties of the different estimators.
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Intergenerational Mobility and Intrahousehold Balance of Power: A Theoretical Analysis
TL;DR: In this paper, a theoretical model of investment in children was proposed to investigate how the intra-household distribution of power affects children outcomes and the transmission of economic status across generations.
Journal ArticleDOI
Environmental bottlenecks in children’s genetic potential for adult socio-economic attainments: Evidence from a health shock
TL;DR: The main finding suggests that girls with high genetic potential whose fathers were exposed to influenza face reduced educational attainments—a gene–environment interaction—but there is no similar effect for boys.
ReportDOI
Earnings Dynamics and Intergenerational Transmission of Skill
Lance Lochner,Youngmin Park +1 more
TL;DR: This article used tax data on two linked generations of Canadians covering 37 years to identify and estimate the intergenerational correlation structure for initial skills and skill growth rates, lifecycle skill growth profiles, and the dynamics of non-skill earnings shocks.
References
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Journal ArticleDOI
An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility
Gary S. Becker,Nigel Tomes +1 more
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.
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Intergenerational Income Mobility in the United States
TL;DR: For example, this article showed that the intergenerational correlation in long-run income is at least 0.4, indicating dramatically less mobility than suggested by earlier research, indicating less mobility.
Posted ContentDOI
Human Capital Policy
TL;DR: This paper showed the importance of cognitive and non-cognitive skills that are formed early in the life cycle in accounting for racial, ethnic and family background gaps in schooling and other dimensions of socioeconomic success.
Journal ArticleDOI
Least absolute deviations estimation for the censored regression model
TL;DR: In this paper, an alternative to maximum likelihood estimation of the parameters of the censored regression (or censored 'Tobit' model) is proposed, which is a generalization of least absolute deviations estimation for the standard linear model, and is also robust to heteroscedasticity.
Journal ArticleDOI
The Dynamics of Educational Attainment for Black, Hispanic, and White Males
TL;DR: The authors found that the long-run factors associated with parental background and family environment, and not credit constraints facing prospective students in the college-going years, account for most of the racial and ethnic disparities in college attendance.