IDEAS home Printed from https://ideas.repec.org/a/kap/reveho/v14y2016i1p231-249.html
   My bibliography  Save this article

Intergenerational correlation of labor market outcomes

Author

Listed:
  • Nicolas Hérault
  • Guyonne Kalb

Abstract

This paper contributes to the relatively limited literature on the correlation of labor market outcomes of parents and their children. This literature is relevant to the larger literature on intergenerational income mobility since correlation in intergenerational labor market outcomes is one of the potential factors contributing to the intergenerational correlation of permanent incomes. In this paper, we consider the time spent in unemployment by both sons and daughters, while accounting for the potential endogeneity of education. Using the Household, Income and Labour Dynamics in Australia data, we find evidence of a positive correlation of labor market outcomes between fathers and sons and, to a lesser extent, between mothers and daughters. In addition, the results reveal a significant relationship between parents’ and children’s education levels, indicating that there is an indirect association of parental education with their children’s labor market outcomes through education. Copyright Springer Science+Business Media New York 2016

Suggested Citation

  • Nicolas Hérault & Guyonne Kalb, 2016. "Intergenerational correlation of labor market outcomes," Review of Economics of the Household, Springer, vol. 14(1), pages 231-249, March.
    • Handle: RePEc:kap:reveho:v:14:y:2016:i:1:p:231-249
    DOI: 10.1007/s11150-013-9218-5
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11150-013-9218-5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11150-013-9218-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    Other versions of this item:

    References listed on IDEAS

    as
    1. Francine Blau & Lawrence Kahn & Albert Liu & Kerry Papps, 2013. "The transmission of women’s fertility, human capital, and work orientation across immigrant generations," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(2), pages 405-435, April.
    2. Gail Pacheco & Tim Maloney, 2003. "Are the Determinants of Intergenerational Welfare Dependency Gender-specific?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(3), pages 371-382, September.
    3. O'Neill, Donal & Sweetman, Olive, 1998. "Intergenerational Mobility in Britain: Evidence from Unemployment Patterns," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 60(4), pages 431-447, November.
    4. Heineck Guido & Riphahn Regina T., 2009. "Intergenerational Transmission of Educational Attainment in Germany – The Last Five Decades," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(1), pages 36-60, February.
    5. Black, Sandra E. & Devereux, Paul J. & Salvanes, Kjell G., 2009. "Like father, like son? A note on the intergenerational transmission of IQ scores," Economics Letters, Elsevier, vol. 105(1), pages 138-140, October.
    6. Peters, H Elizabeth, 1992. "Patterns of Intergenerational Mobility in Income and Earnings," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 456-466, August.
    7. Tim Maloney & Sholeh Maani & Gail Pacheco, 2003. "Intergenerational Welfare Participation in New Zealand," Australian Economic Papers, Wiley Blackwell, vol. 42(3), pages 346-362, September.
    8. Janet Currie & Enrico Moretti, 2007. "Biology as Destiny? Short- and Long-Run Determinants of Intergenerational Transmission of Birth Weight," Journal of Labor Economics, University of Chicago Press, vol. 25(2), pages 231-264.
    9. Jo Blanden & Paul Gregg & Lindsey Macmillan, 2007. "Accounting for Intergenerational Income Persistence: Noncognitive Skills, Ability and Education," Economic Journal, Royal Economic Society, vol. 117(519), pages 43-60, March.
    10. Miles Corak, 2006. "Do Poor Children Become Poor Adults? Lessons from a Cross-Country Comparison of Generational Earnings Mobility," Research on Economic Inequality, in: Dynamics of Inequality and Poverty, pages 143-188, Emerald Group Publishing Limited.
    11. Anna Christina D'Addio, 2007. "Intergenerational Transmission of Disadvantage: Mobility or Immobility Across Generations?," OECD Social, Employment and Migration Working Papers 52, OECD Publishing.
    12. Teresa Casey & Christian Dustmann, 2008. "Intergenerational Transmission of Language Capital and Economic Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 4660-4687.
    13. Peter Gottschalk, 1992. "The intergenerational transmission of welfare participation: Facts and possible causes," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 11(2), pages 254-272.
    14. Buly A Cardak & Chris Ryan, 2006. "Why are high ability individuals from poor backgrounds under-represented at university?," Working Papers 2006.04, School of Economics, La Trobe University.
    15. Björklund Anders & Jäntti Markus & Solon Gary, 2007. "Nature and Nurture in the Intergenerational Transmission of Socioeconomic Status: Evidence from Swedish Children and Their Biological and Rearing Parents," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-23, November.
    16. Helena Holmlund & Mikael Lindahl & Erik Plug, 2011. "The Causal Effect of Parents' Schooling on Children's Schooling: A Comparison of Estimation Methods," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 615-651, September.
    17. John V. Pepper, 2000. "The Intergenerational Transmission Of Welfare Receipt: A Nonparametric Bounds Analysis," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 472-488, August.
    18. Leigh Andrew, 2007. "Intergenerational Mobility in Australia," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-28, December.
    19. Checchi, Daniele & Fiorio, Carlo V. & Leonardi, Marco, 2013. "Intergenerational persistence of educational attainment in Italy," Economics Letters, Elsevier, vol. 118(1), pages 229-232.
    20. repec:bla:obuest:v:60:y:1998:i:4:p:431-47:a is not listed on IDEAS
    21. John Ermisch & Marco Francesconi & Thomas Siedler, 2006. "Intergenerational Mobility and Marital Sorting," Economic Journal, Royal Economic Society, vol. 116(513), pages 659-679, July.
    22. John Creedy, 1998. "The Dynamics of Inequality and Poverty," Books, Edward Elgar Publishing, number 1484.
    23. Nicolas Beaulieu & Jean-Yves Duclos & Bernard Fortin & Manon Rouleau, 2005. "Intergenerational reliance on social assistance: Evidence from Canada," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(3), pages 539-562, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ubaldi, Michele & Picchio, Matteo, 2023. "Intergenerational Scars: The Impact of Parental Unemployment on Individual Health Later in Life," IZA Discussion Papers 16103, Institute of Labor Economics (IZA).
    2. Kind, Michael & Haisken-DeNew, John P., 2012. "Sons' Unexpected Long Term Scarring due to Fathers' Unemployment," Ruhr Economic Papers 375, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Evangelia Papapetrou & Pinelopi Tsalaporta, 2017. "Is there a case for intergenerational transmission of female labour force participation and educational attainment? Evidence from Greece during the crisis," Working Papers 223, Bank of Greece.
    4. Silvia Mendolia & Nga Nguyen & Oleg Yerokhin, 2019. "The impact of parental illness on children’s schooling and labour force participation: evidence from Vietnam," Review of Economics of the Household, Springer, vol. 17(2), pages 469-492, June.
    5. Gimenez-Nadal, José Ignacio & Molina, José Alberto & Velilla, Jorge, 2020. "Short- vs Long-Term Intergenerational Correlations of Employment and Self-Employment in Europe," IZA Discussion Papers 12933, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nicolas Hérault & Guyonne Kalb, 2016. "Intergenerational correlation of labor market outcomes," Review of Economics of the Household, Springer, vol. 14(1), pages 231-249, March.
    2. Black, Sandra E. & Devereux, Paul J., 2011. "Recent Developments in Intergenerational Mobility," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 16, pages 1487-1541, Elsevier.
    3. Cobb-Clark, Deborah A. & Dahmann, Sarah C. & Salamanca, Nicolás & Zhu, Anna, 2022. "Intergenerational disadvantage: Learning about equal opportunity from social assistance receipt," Labour Economics, Elsevier, vol. 79(C).
    4. Gabriella Berloffa & Eleonora Matteazzi & Paola Villa, 2016. "Family background and youth labour market outcomes across Europe," Working Papers 393, ECINEQ, Society for the Study of Economic Inequality.
    5. Anna Christina D'Addio, 2007. "Intergenerational Transmission of Disadvantage: Mobility or Immobility Across Generations?," OECD Social, Employment and Migration Working Papers 52, OECD Publishing.
    6. Silke Anger & Guido Heineck, 2010. "Do smart parents raise smart children? The intergenerational transmission of cognitive abilities," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 1105-1132, June.
    7. Andrea Ichino & Loukas Karabarbounis & Enrico Moretti, 2011. "The Political Economy Of Intergenerational Income Mobility," Economic Inquiry, Western Economic Association International, vol. 49(1), pages 47-69, January.
    8. Leone, Tharcisio, 2017. "The gender gap in intergenerational mobility: Evidence of educational persistence in Brazil," Discussion Papers 2017/27, Free University Berlin, School of Business & Economics.
    9. Doan, Quang Hung & Nguyen, Ngoc Anh, 2016. "Intergenerational Income Mobility in Vietnam," MPRA Paper 70603, University Library of Munich, Germany.
    10. Mäder Miriam & Riphahn Regina T. & Schwientek Caroline & Müller Steffen, 2015. "Intergenerational Transmission of Unemployment – Evidence for German Sons," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(4-5), pages 355-375, August.
    11. Silvia Mendolia & Peter Siminski, 2016. "New Estimates of Intergenerational Mobility in Australia," The Economic Record, The Economic Society of Australia, vol. 92(298), pages 361-373, September.
    12. Björklund, Anders & Jäntti, Markus, 2012. "How important is family background for labor-economic outcomes?," Labour Economics, Elsevier, vol. 19(4), pages 465-474.
    13. Daniel Erdsiek, 2016. "Overqualification of graduates: assessing the role of family background [Überqualifikation von Hochschulabsolventen: Welche Rolle spielt der familiäre Hintergrund?]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 49(3), pages 253-268, November.
    14. Cornelissen Thomas & Jirjahn Uwe & Tsertsvadze Georgi, 2008. "Parental Background and Earnings: German Evidence on Direct and Indirect Relationships," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(5-6), pages 554-572, October.
    15. Hugo Nopo & Natalia Winder, 2008. "Ethnicity and Human Capital Accumulation in Urban Mexico," Research Department Publications 4619, Inter-American Development Bank, Research Department.
    16. Johnston, David W. & Schurer, Stefanie & Shields, Michael A., 2011. "Evidence on the Long Shadow of Poor Mental Health across Three Generations," IZA Discussion Papers 6014, Institute of Labor Economics (IZA).
    17. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    18. Timm Bönke & Guido Neidhöfer, 2018. "Parental Background Matters: Intergenerational Mobility and Assimilation of Italian Immigrants in Germany," German Economic Review, Verein für Socialpolitik, vol. 19(1), pages 1-31, February.
    19. Quheng Deng & Björn Gustafsson & Shi Li, 2013. "Intergenerational Income Persistence in Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(3), pages 416-436, September.
    20. Juan D. Baron & Deborah A. Cobb-Clark & Nisvan Erkal, 2008. "Cultural Transmission of Work-Welfare Attitudes and the Intergenerational Correlation in Welfare Receipt," Department of Economics - Working Papers Series 1059, The University of Melbourne.

    More about this item

    Keywords

    Labor market outcomes; Unemployment; Education; Intergenerational correlation; J62; J64; I21;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

    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:kap:reveho:v:14:y:2016:i:1:p:231-249. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.