What is the source of the intergenerational correlation in earnings? A comment

Corina Boar

    Research output: Contribution to journalArticlepeer-review

    Abstract

    Gayle et al. (2022) study the sources of intergenerational persistence in earnings using a structural model estimated with data from the Panel Study of Income Dynamics. In the model, altruistic parents choose whether to have children or not, how much time to spend with their children and how much time to work, as well as how much to consume. Earnings in the labor market depend on observable characteristics of individuals, as well as parents’ education, ability, income and time investments. The estimated model predicts that nurture explains between 60 and 70% of intergenerational persistence, with a large role for labor market effects.

    Original languageEnglish (US)
    Pages (from-to)46-48
    Number of pages3
    JournalJournal of Monetary Economics
    Volume129
    DOIs
    StatePublished - Jul 2022

    Keywords

    • Earnings
    • Intergenerational mobility
    • Labor supply

    ASJC Scopus subject areas

    • Finance
    • Economics and Econometrics

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