Parental time investment and intergenerational mobility

Minchul Yum

No 16-06, Working Papers from University of Mannheim, Department of Economics

Abstract: This paper investigates parental time investment in children prior to formal schooling as a source of intergenerational income persistence in the U.S. I develop a dynamic general equilibrium model where lifetime income endogenously persists across generations through multiple channels. My model replicates a series of important untargeted aspects of the data including the U.S. income quintile transition matrix. I find that the parental time investment channel accounts for nearly 40 percent of the observed intergenerational income persistence. Policy experiments suggest that e¤ective ways of improving mobility should focus on narrowing discrepancies in the quantity and quality of parental time investments.

Keywords: parental time; human capital investment; intergenerational persistence; college education (search for similar items in EconPapers)
JEL-codes: E24 I24 J22 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-dge and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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https://madoc.bib.uni-mannheim.de/40579/1/Yum%2016-06.pdf

Related works:
Working Paper: Parental Time Investment and Intergenerational Mobility (2020)
Working Paper: Parental Time Investment and Intergenerational Mobility (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:mnh:wpaper:40579

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