Working Paper: CEPR ID: DP7786
Authors: Sandra Black; Paul J. Devereux
Abstract: Economists and social scientists have long been interested in intergenerational mobility, and documenting the persistence between parents and children?s outcomes has been an active area of research. However, since Gary Solon?s 1999 Chapter in the Handbook of Labor Economics, the literature has taken an interesting turn. In addition to focusing on obtaining precise estimates of correlations and elasticities, the literature has placed increased emphasis on the causal mechanisms that underlie this relationship. This chapter describes the developments in the intergenerational transmission literature since the 1999 Handbook Chapter. While there have been some important contributions in terms of measurement of elasticities and correlations, we will focus primarily on advances in our understanding of the forces driving the relationship and less on the precision of the correlations themselves.
Keywords: intergenerational transmission
JEL Codes: D1; D3; J3; J6
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Higher parental income (I24) | Greater investment in children's human capital (J24) |
| Greater investment in children's human capital (J24) | Increased children's earnings (J13) |
| Higher parental income (I24) | Increased children's earnings (J13) |
| Genetic factors (C29) | Intergenerational persistence in children's outcomes (D15) |
| Parental educational attainment (I24) | Greater investment in children's human capital (J24) |
| Quality of education provided to children (I24) | Increased children's earnings (J13) |
| Public education policies (I28) | Intergenerational earnings elasticity (IGE) (J39) |
| Economic conditions (E66) | Intergenerational earnings elasticity (IGE) (J39) |