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From Parents' Cradle to Children's Career: Intergenerational Effects of Parental Investments

Author

Listed:
  • de Vries, Sander

    (Vrije Universiteit Amsterdam)

  • Ketel, Nadine

    (Vrije Universiteit Amsterdam)

  • Lindeboom, Maarten

    (Vrije Universiteit Amsterdam)

Abstract

There is a clear consensus that childhood experiences shape adult success, yet there is limited understanding of their impact on future generations. We proxy parental investments during childhood with birth order and study whether disadvantages due to lower investments are transmitted to future generations. Birth order effects on the first generation are large, apply to 80% of the population, and can be identified with relatively mild assumptions. Using cousin comparisons in Dutch administrative data, we find that around 20 percent of the income disadvantages are transmitted. Additionally, we find sizeable decreases in children's education and increases in boys' criminal behavior.

Suggested Citation

  • de Vries, Sander & Ketel, Nadine & Lindeboom, Maarten, 2024. "From Parents' Cradle to Children's Career: Intergenerational Effects of Parental Investments," IZA Discussion Papers 17570, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17570
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    More about this item

    Keywords

    intergenerational mobility; birth order; extended family; education; crime;
    All these keywords.

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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