Journal ArticleDOI
The intergenerational correlation between children's adult earnings and their parents' income: results from the michigan panel survey of income dynamics
Jere R. Behrman,Paul Taubman +1 more
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In this article, the authors present new estimates based on the Panel Study of Income Dynamics, which suggest correlations over 0.5 with longer-run income and earning measures, as well as some gender and race differences and some impact of liquidity constraints.Abstract:
Intergenerational correlations between parental income and child earnings reflect the extent of intergenerational economic mobility and equality of opportunity. Previous estimates are about 0.2, but these estimates suffer from a number of problems, including the use of but one year of observations and of nonrandom samples. We present new estimates based on the Panel Study of Income Dynamics. These estimates suggest correlations over 0.5 with longer-run income and earning measures, as well as some gender and race differences and some impact of liquidity constraints. They also suggest that the intergenerational elasticity is greater as parental income increases, the opposite of the Becker-Tomes conjecture.read more
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Posted Content
The Determinants of Children's Attainments: A Review of Methods and Findings
Robert Haveman,Barbara Wolfe +1 more
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.
Book ChapterDOI
Intergenerational Mobility in the Labor Market
TL;DR: The authors summarizes what has been learned from recent research on intergenerational transmission of earnings status, using a simple theoretical model to highlight several key concepts, and discusses the connections among three related empirical literatures: on sibling correlations in earnings, on the intragenerational elasticity of offspring's earnings with respect to parents' earnings or income, and on neighborhood effects.
Posted Content
Regression Toward Mediocrity in Economic Stature
TL;DR: The authors found that the intergenerational correlation in lifetime earnings between fathers and sons was on the order of 0.4, which suggests considerably less inter-generational mobility than previously believed.
Journal ArticleDOI
Entrepreneurship, Saving, and Social Mobility
TL;DR: In this article, the authors examine entrepreneurship in order to analyze the degree to which the opportunity to start or own a business affects the household's saving behavior and the implication of this behavior for the distribution of wealth and the relationship between the extent of entrepreneurship in the economy and socioeconomic mobility, that is, the movement of families across wealth classes over time.
Report SeriesDOI
Intergenerational mobility in Britain
TL;DR: This paper used longitudinal data on children and their parents to assess the extent of intergenerational mobility in Britain and found that the extent is limited, and that there is an important asymmetry in inter-generational earnings mobility with upward mobility from the bottom, of the earnings distribution being more likely than downward Mobility from the top.
References
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Book
Human capital and the rise and fall of families
Gary S. Becker,Nigel Tomes +1 more
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.
Journal ArticleDOI
Consumption and Liquidity Constraints: An Empirical Investigation
TL;DR: In this article, the authors test the permanent income hypothesis against the alternative hypothesis that consumers optimize subject to a well-specified sequence of borrowing constraints, and the results generally support the hypothesis that an inability to borrow against future labor income affects the consumption of a significant portion of the population.
Journal ArticleDOI
The Adjustment of Consumption to Changing Expectations about Future Income
TL;DR: In this paper, the role of current income in providing new information about future income and signalling changes in permanent income is analyzed using time-series analysis to quantify the revision in permanent incomes induced by an innovation in the current income process.
Journal ArticleDOI
Schooling and Inequality from Generation to Generation
TL;DR: More and better schooling has been seen as an antidote to the brutalization of industrial life as discussed by the authors, and the popularity of educational reform among liberals and progressives stemmed from more political considerations: educational equalization seemed to offer a strategy for achieving the greater social equality that was politically viable.
Journal ArticleDOI
Effects of community and family background on achievement
TL;DR: This article examined the effects of socioeconomic background on education and earnings of black and white men ages 23-32 and found that neighborhood differences are at least as important as family characteristics in explaining the gaps between black and whites achievement and that the omission of neighborhood characteristics results in a misleading picture of the source of background effects.