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12:30 - 13:30 3 July 2017

What is the source of intergenerational correlation in earnings?

Location

IFS Conference room (link Map)
7 Ridgmount Street | London | WC1E 7AE | United Kingdom

Open to: Academic | Student
Admission: free
Ticketing: Open

Speaker information

Limor Golan, Washington University

A dynastic model of household behavior is used to estimate and decompose the correlations in earnings across generations. The estimated model can explain 75% to 80% of the observed correlation in lifetime earnings between fathers and sons, mothers and daughters, and families across generations. We find that human capital accumulation in the labor market, the nonlinear return to part- versus full-time work, and the return to parental time investment in children are the main forces driving the intergenerational correlation in earnings through their e┬žects on fertility and the division of labor within the household. Assortative mating magnifies these forces.


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