IDEAS home Printed from https://ideas.repec.org/a/jid/journl/y2009v18i2p118-141.html
   My bibliography  Save this article

The Intergenerational Transmission of Inequality for Education and Earnings

Author

Listed:
  • Michael Beenstock

    (Habrew University of Jerusalem)

Abstract

Inequality is transmitted intergenerationally because the outcomes of parents and their children are correlated. The correlation may be due to inherited, economic, and/or contextual factors. A structural model is proposed in which parents affect their children directly through their own schooling and earnings and indirectly through their own inherited ability. By taking account of inherited ability, the causal effect on outcome of parental schooling and earnings upon the schooling and earnings of their children is identified. A generated regressor methodology is used to estimate the ability to learn and earn of Israeli parents. It is shown that the schooling and earnings of children are affected by these generated regressors. Further, although the causal effects are small, it is shown that parents’ income and schooling matter for their children’s schooling and earnings. Both nature and nurture are reflected in the intergenerational correlation for schooling and earnings, but nature and contextual variables turn out to matter more than nurture.

Suggested Citation

  • Michael Beenstock, 2009. "The Intergenerational Transmission of Inequality for Education and Earnings," Journal of Income Distribution, Ad libros publications inc., vol. 18(2), pages 118-141, June.
    • Handle: RePEc:jid:journl:y:2009:v:18:i:2:p:118-141
    as

    Download full text from publisher

    File URL: http://jid.journals.yorku.ca/index.php/jid/article/view/23368
    Download Restriction: Some fulltext downloads are only available to subscribers. See JID website for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    intergenerational correlation; intergenerational mobility; nature vs nurture; inherited ability;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jid:journl:y:2009:v:18:i:2:p:118-141. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Timm Boenke (email available below). General contact details of provider: https://edirc.repec.org/data/gyorkca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.