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Intergenerational Correlation of Labour Market Outcomes

Nicolas Hérault and Guyonne Kalb

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: This paper focuses on the correlation of labour market outcomes of parents and children and investigates whether education is an important factor in this correlation, allowing for its potential endogeneity. Based on the Household, Income and Labour Dynamics in Australia (HILDA) data, the multivariate analyses show that men's labour market outcomes are affected by their fathers' labour market outcomes. The results show no significant intergenerational correlation of labour market outcomes for women when using the proportion of time in unemployment However, there is a significant relationship between the labour market outcomes of the mother and the proportion of time spent out of work by her daughter. Finally, the results show a significant relationship between parents' and children's education levels, indicating that there is an indirect effect of parental education on their children's labour market outcomes through education. Indeed, it is shown that education significantly reduces the proportion of time in unemployment and not in work.

Pages: 33 pages
Date: 2009-06
New Economics Papers: this item is included in nep-edu, nep-hrm and nep-lab
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Citations: View citations in EconPapers (1)

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Journal Article: Intergenerational correlation of labor market outcomes (2016) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:iae:iaewps:wp2009n14

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