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Short- vs Long-Term Intergenerational Correlations of Employment and Self-Employment in Europe

J. Ignacio Gimenez-Nadal (), José Alberto Molina () and Jorge Velilla ()
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J. Ignacio Gimenez-Nadal: University of Zaragoza

Authors registered in the RePEc Author Service: Jose Ignacio Gimenez-Nadal ()

No 12933, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper analyzes the existence of short- and long-term intergenerational correlation of employment and self-employment in European countries, using data from the European Union Statistics on Income and Living Conditions. Using longitudinal data for the period 2003-2016, fixed effect estimates show a significant short-term correlation between the current employment status of parents and that of their children. However, short-term correlation of self-employment seems to be driven only by father-son correlations. Conversely, using the special module on Intergenerational Transmissions for the year 2011, estimates show a strong and significant correlation between respondents' self-employment status, and that of their parents when respondents were 14 years old. This suggests that self-employment decisions are not related to short-term family labor supply decisions, but to long-term intergenerational transmission.

Keywords: short- and long-term; Intergenerational transmissions; employment; self-employment; EU-SILC data (search for similar items in EconPapers)
JEL-codes: J62 E24 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2020-01
New Economics Papers: this item is included in nep-eur, nep-lab and nep-mac
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