What is the source of the intergenerational correlation in earnings?

• 成果类型: Article
• 署名作者: Gayle, George-Levi; Golan, Limor; Soytas, Mehmet A.
• 署名单位: Washington University (WUSTL); Federal Reserve System - USA; Federal Reserve Bank - St. Louis; King Fahd University of Petroleum & Minerals; King Fahd University of Petroleum & Minerals
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2022.04.007
• 发表日期: 2022
• 页码: 24-45
• 关键词: Intergenerational models; estimation; discrete choice; human capital; Panel study of income dynamics

摘要

We use a dynastic model of household behavior to estimate and decompose the correlations in earnings across generations. The estimated model can explain 75% to 80% of the observed correlation in lifetime earnings between fathers and sons, mothers and daughters, and families across generations. We find that human-capital accumulation in the labor market, the nonlinear return to part-versus full-time work, and the return to parental time investment in children are the main forces driving the intergenerational correlation in earnings. The primary mechanism through which these three sources affect the intergenerational correlation in earnings is their effects on fertility and the division of labor within the household. Assortative mating magnifies these forces. (c) 2022 Elsevier B.V. All rights reserved.