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Inter-generational effect of parental time and its policy implications

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  • Zhu, Guozhong
  • Vuralz, Gulfer

Abstract

Why do parents with more human capital spend more time teaching and taking care of their children, in spite of the higher opportunity cost? How does this aect inter-generational mobility and wage inequality? Does this have any implications on the policy that provides public schooling through income taxation? We develop and estimate a theoretical model to answer these questions, in the light that parental time investment is a powerful means of transmitting human capital inter-generationally.

Suggested Citation

  • Zhu, Guozhong & Vuralz, Gulfer, 2012. "Inter-generational effect of parental time and its policy implications," MPRA Paper 40670, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:40670
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    Cited by:

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    2. Minchul Yum, 2023. "Parental Time Investment And Intergenerational Mobility," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(1), pages 187-223, February.
    3. Jianu Ionuț & Tudorache Maria-Daniela & Nicolescu Andreea Florentina, 2024. "Investigating the Effects of Education and Labour Market Challenges on Income Inequality," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 18(1), pages 1950-1958.
    4. Xiaoyan Chen Youderian, 2018. "On parental care and home production," Economics Bulletin, AccessEcon, vol. 38(1), pages 520-527.
    5. Qin, Xuezheng & Wang, Tianyu & Zhuang, Castiel Chen, 2016. "Intergenerational transfer of human capital and its impact on income mobility: Evidence from China," China Economic Review, Elsevier, vol. 38(C), pages 306-321.
    6. Yang, Juan & Qiu, Muyuan, 2016. "The impact of education on income inequality and intergenerational mobility," China Economic Review, Elsevier, vol. 37(C), pages 110-125.

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    More about this item

    Keywords

    Human capital production; Parental time investment; Wage inequality; Earnings persistence; Public schooling;
    All these keywords.

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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