The Effects of Parental Income and Family Structure on Intergenerational Mobility: A Trajectories-Based Approach

Yoosoon Chang (), Steven Durlauf, Bo Hu and Joon Park

No 34179, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We examine how parental income and family structure during childhood and adolescence affect adult income, emphasizing the timing of these effects. Using an ordered multinomial probability model with functional covariates, we find that these familial influences are strongest in middle childhood and adolescence. We also uncover a complementary relationship in the effects of income and family structure trajectories during key developmental periods. By flexibly controlling for personal and family characteristics using nonparametric methods, our approach effectively handles high-dimensional covariates. The results advance the understanding of intergenerational income mobility and highlight the long-term importance of familial conditions for adult economic success.

JEL-codes: C10 C14 C25 C50 D10 H0 J01 J10 (search for similar items in EconPapers)
Date: 2025-08
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