Parental Time Investment and Intergenerational Mobility

Minchul Yum

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

Abstract: This paper investigates di¤erences in parental time investment as a determinant of intergenerational persistence of lifetime income. Using a quantitative model that replicates a series of important untargeted aspects of the data including the U.S. income quintile transition matrix, I …nd that the parental time investment channel accounts for nearly half of the observed intergenerational income persistence. Heterogeneity in parental time investment across households strengthens intergenerational association and hinders aggregate e¢ciency. Policy experiments suggest that an e¤ective way of improving intergenerational mobility, aggregate output, and welfare is to narrow discrepancies in the quantity and quality of parental time investments.

Keywords: Intergenerational elasticity; quintile transition matrix; parental time; college education; misallocation (search for similar items in EconPapers)
JEL-codes: E24 I24 J22 (search for similar items in EconPapers)
Pages: 52
Date: 2018-10
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Parental Time Investment and Intergenerational Mobility (2020)
Working Paper: Parental time investment and intergenerational mobility (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:bon:boncrc:crctr224_2018_048v2

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