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Intergenerational Mobility and the Timing of Parental Income

Author

Listed:
  • Carneiro, Pedro

    (University College London)

  • Lopez Garcia, Italo

    (University of Southern California)

  • Salvanes, Kjell G.

    (Norwegian School of Economics)

  • Tominey, Emma

    (University of York)

Abstract

We extend the standard intergenerational mobility literature by modelling individual outcomes as a function of the whole history of parental income, using data from Norway. We find that, conditional on permanent income, education is maximized when income is balanced between the early childhood and middle childhood years. In addition, there is an advantage to having income occur in late adolescence rather than in early childhood. These result are consistent with a model of parental investments in children with multiple periods of childhood, income shocks, imperfect insurance, dynamic complementarity, and uncertainty about the production function and the ability of the child.

Suggested Citation

  • Carneiro, Pedro & Lopez Garcia, Italo & Salvanes, Kjell G. & Tominey, Emma, 2015. "Intergenerational Mobility and the Timing of Parental Income," IZA Discussion Papers 9479, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9479
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    References listed on IDEAS

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    More about this item

    Keywords

    semiparametric estimation; parental income timing; intergenerational mobility; child human capital;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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