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The association between fathers’ characteristics and children’s earnings in Italy: does only education matter?

Author

Listed:
  • Francesco Bloise

    (Università degli Studi di Urbino Carlo Bo)

  • Michele Raitano

    (Sapienza Università di Roma)

Abstract

This work analyses mechanisms behind the intergenerational transmission of inequality in Italy by exploiting the waves from 2000 to 2016 of the Bank of Italy’s Survey on Household Income and Wealth. Using fathers’ education as a proxy of parental background, we show that 1-year increase in fathers’ education is associated with a 3.6% increase in children’s earnings. Contrary to the widespread idea that the intergenerational transmission is only related to parents’ investment in their children’s education, large background-related advantages (+1.8% for each year of parental education) persist when we control for children’s education and other observables related to their human capital. Moreover, background-related advantages remain large and statistically significant (+1.1%) when we also control for children’s occupation. Furthermore, we find that our measure of intergenerational association has not declined.

Suggested Citation

  • Francesco Bloise & Michele Raitano, 2018. "The association between fathers’ characteristics and children’s earnings in Italy: does only education matter?," Argomenti, University of Urbino Carlo Bo, Department of Economics, Society & Politics, vol. 10(10), pages 1-20, May-Augus.
    • Handle: RePEc:urb:journl:v:10:y:2018:p:1-20
    DOI: 10.14276/1971-8357.1516
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    More about this item

    Keywords

    intergenerational inequality; parental background; earnings; education; unobservable skills; social networks.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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