IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/68507.html
   My bibliography  Save this paper

The effect of parental wealth on children’s outcomes in early adulthood

Author

Listed:
  • Karagiannaki, Eleni

Abstract

Using data from the British Household Panel Survey we show that parental wealth has a positive association with a range of outcomes in early adulthood. The outcome that exhibits the strongest association with parental wealth is higher educational attainment. This association is mainly concentrated at the lower half of the distribution and remains strong after controlling for a wide range confounding family characteristics. Parental wealth also has a positive relationship with children’s employment probability and earnings, although the gradient for both outcomes is rather weak and largely mediated by children’s education. A potential driver of the small size of the latter effects is the young age of the sample.

Suggested Citation

  • Karagiannaki, Eleni, 2017. "The effect of parental wealth on children’s outcomes in early adulthood," LSE Research Online Documents on Economics 68507, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:68507
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/68507/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," American Economic Review, American Economic Association, vol. 96(4), pages 1308-1320, 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. Yoko Niimi, 2018. "Do borrowing constraints matter for intergenerational educational mobility? Evidence from Japan," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 23(4), pages 628-656, October.
    2. Guarini, Giulio & Laureti, Tiziana & Garofalo, Giuseppe, 2020. "Socio-institutional determinants of educational resource efficiency according to the capability approach: An endogenous stochastic frontier analysis," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    3. Jo Blanden & Andrew Eyles & Stephen Machin, 2023. "Intergenerational home ownership," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 21(2), pages 251-275, June.
    4. Bonacini, Luca & Gallo, Giovanni & Scicchitano, Sergio, 2021. "Sometimes you cannot make it on your own. How household background influences chances of success in Italy," GLO Discussion Paper Series 832, Global Labor Organization (GLO).
    5. Cave, Sophie Nicole & Wright, Megan & von Stumm, Sophie, 2022. "Change and stability in the association of parents' education with children's intelligence," Intelligence, Elsevier, vol. 90(C).
    6. Katerina Gousia, 2023. "Cognitive abilities and long-term care insurance: evidence from European data," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 48(1), pages 68-101, January.
    7. Attari, Muhammad Qasim & Pervaiz, Dr. Zahid & Razzaq Chaudhary, Dr. Amatul, 2017. "Impact of Agricultural Land Inequality on Human Development in Punjab (Pakistan)," MPRA Paper 89070, University Library of Munich, Germany.
    8. Tesfagiorgis, Mussie & Tsegai, Samuel & Mengesha, Tedros & Craft, Jana & Tessema, Mussie, 2020. "The correlation between parental socioeconomic status (SES) and children’s academic achievement: The case of Eritrea," Children and Youth Services Review, Elsevier, vol. 116(C).

    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. Michele Raitano & Francesco Vona & Claudia Vittori, 2015. "The effect of parental background along the son's earnings distribution : does one model fit for all?," Working Papers hal-03459749, HAL.
    2. Serdar Ozkan & Jae Song & Fatih Karahan & Fatih Guvenen, 2013. "What Do Data on Millions of U.S. Workers Say About Labor Income Risk?," 2013 Meeting Papers 1271, Society for Economic Dynamics.
    3. Chong Lu, 2022. "The effect of migration on rural residents’ intergenerational subjective social status mobility in China," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 3279-3308, October.
    4. Jennifer Elena Feichtmayer & Klaus Gründler, 2021. "Global Evidence on Misperceptions and Preferences for Redistribution," CESifo Working Paper Series 9381, CESifo.
    5. Dodin, Majed & Findeisen, Sebastian & Henkel, Lukas & Sachs, Dominik & Schüle, Paul, 2024. "Social mobility in Germany," Journal of Public Economics, Elsevier, vol. 232(C).
    6. Dmytro Hryshko, 2012. "Labor income profiles are not heterogeneous: Evidence from income growth rates," Quantitative Economics, Econometric Society, vol. 3(2), pages 177-209, July.
    7. Catherine Haeck & Pierre Lefebvre, 2020. "The Evolution of Cognitive Skills Inequalities by Socioeconomic Status across Canada," Working Papers 20-04, Research Group on Human Capital, University of Quebec in Montreal's School of Management.
    8. Monique De Haan & Edwin Leuven, 2020. "Head Start and the Distribution of Long-Term Education and Labor Market Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 38(3), pages 727-765.
    9. Bhashkar Mazumder, 2014. "Black–White Differences in Intergenerational Economic Mobility in the U.S," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q I.
    10. Åslund, Olof & Grönqvist, Hans, 2010. "Family size and child outcomes: Is there really no trade-off?," Labour Economics, Elsevier, vol. 17(1), pages 130-139, January.
    11. Joseph Ferrie & Catherine Massey & Jonathan Rothbaum, 2016. "Do Grandparents and Great-Grandparents Matter? Multigenerational Mobility in the US, 1910-2013," NBER Working Papers 22635, National Bureau of Economic Research, Inc.
    12. Gouskova, Elena & Chiteji, Ngina & Stafford, Frank, 2010. "Estimating the intergenerational persistence of lifetime earnings with life course matching: Evidence from the PSID," Labour Economics, Elsevier, vol. 17(3), pages 592-597, June.
    13. Liana E. Fox, 2016. "Parental Wealth and the Black–White Mobility Gap in the U.S," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(4), pages 706-723, December.
    14. Piraino, Patrizio, 2015. "Intergenerational Earnings Mobility and Equality of Opportunity in South Africa," World Development, Elsevier, vol. 67(C), pages 396-405.
    15. Liss, Erik & Korpi, Martin & Wennberg, Karl, 2023. "Absolute income mobility and the effect of parent generation inequality: An extended decomposition approach," European Economic Review, Elsevier, vol. 152(C).
    16. Ruhose, Jens & Falck, Oliver & Lameli, Alfred, 2014. "The Cost of Migrating to a Culturally Different Location," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100327, Verein für Socialpolitik / German Economic Association.
    17. Jo Blanden & Lindsey Macmillan, 2014. "Education and Intergenerational Mobility: Help or Hindrance?," CASE Papers case179, Centre for Analysis of Social Exclusion, LSE.
    18. Gallipoli, Giovanni & Low, Hamish & Mitra, Aruni, 2020. "Consumption and Income Inequality across Generations," CEPR Discussion Papers 15166, C.E.P.R. Discussion Papers.
    19. Dang, Hai-Anh H & Abanokova, Kseniya, 2022. "Do Gender, Child, and Parent Characteristics Contribute to Intergenerational Subjective Well-Being Mobility? Evidence from Russia during 1994-2019," IZA Discussion Papers 15244, Institute of Labor Economics (IZA).
    20. Paul Gregg & Lindsey Macmillan & Claudia Vittori, 2017. "Moving Towards Estimating Sons' Lifetime Intergenerational Economic Mobility in the UK," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(1), pages 79-100, February.

    More about this item

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D3 - Microeconomics - - Distribution
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • 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

    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:ehl:lserod:68507. 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: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.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.