Disparate Impacts of Job Loss by Parental Income and Implications for Intergenerational Mobility

2021 ◽  
Author(s):  
Martti Kaila ◽  
Emily Nix ◽  
Krista Riukula
Keyword(s):  
Job Loss ◽  
Intergenerational Mobility ◽  
Parental Income

scholarly journals Plastic and Immobile

2019 ◽  
Author(s):  
Emily Rauscher
Keyword(s):  
Low Income ◽  
Fixed Effects ◽  
Intergenerational Mobility ◽  
Internal Validity ◽  
Differential Susceptibility ◽  
Parental Income ◽  
Parental Characteristics ◽  
Susceptibility Model ◽  
Nationally Representative ◽  
The Relationship

Contrary to traditional biological arguments, the differential susceptibility model suggests genotype may moderate rather than mediate parent-child economic similarity. Using family fixed effects models of Add Health sibling data, I investigate the relationship between an index of sensitive genotypes and intergenerational mobility. Full, same sex sibling comparisons hold constant parental characteristics and address the non-random distribution of genotype that reduces internal validity in nationally representative samples. Across multiple measures of young adult financial standing, those with more copies of sensitive genotypes achieve lower economic outcomes than their sibling if they are from a low income context but fare better from a high income context. This genetic sensitivity to parental income entails lower intergenerational mobility. Results support the differential susceptibility model and contradict simplistic genetic explanations for intergenerational inequality, suggesting sensitive genotypes are not inherently positive or negative but rather increase dependence on parental income and reduce mobility.

scholarly journals Intergenerational mobility and the timing of parental income

2015 ◽  
Author(s):  
Emma Tominey ◽  
Pedro Carneiro ◽  
Italo Lopez Garcia ◽  
Kjell G. Salvanes
Keyword(s):  
Intergenerational Mobility ◽  
Parental Income

scholarly journals Intergenerational Mobility and the Timing of Parental Income

2015 ◽  
Author(s):  
Pedro Manuel Carneiro ◽  
Italo Lopez Garcia ◽  
Kjell G. Salvanes ◽  
Emma Tominey
Keyword(s):  
Intergenerational Mobility ◽  
Parental Income

scholarly journals Intergenerational Mobility and the Timing of Parental Income

2015 ◽  
Author(s):  
Pedro Manuel Carneiro ◽  
Italo Lopez Garcia ◽  
Kjell G. Salvanes ◽  
Emma Tominey
Keyword(s):  
Intergenerational Mobility ◽  
Parental Income

scholarly journals Intergenerational Mobility and the Timing of Parental Income

2020 ◽  
Author(s):  
Emma Tominey ◽  
Pedro Carneiro ◽  
Italo Lopez Garcia ◽  
Kjell G. Salvanes
Keyword(s):  
Intergenerational Mobility ◽  
Parental Income

scholarly journals Parental Job Loss and Children's Long-Term Outcomes: Evidence from 7 Million Fathers' Layoffs

2016 ◽  
Vol 8 (3) ◽  
pp. 247-283 ◽  
Author(s):  
Nathaniel G. Hilger
Keyword(s):  
United States ◽  
Job Loss ◽  
College Enrollment ◽  
Family Income ◽  
The United States ◽  
Early Career ◽  
Long Term Outcomes ◽  
Parental Income ◽  
Firm Closures

How do parental layoffs and their large attendant income losses affect children's long-term outcomes? This question has proven difficult to answer due to the endogeneity of parental layoffs. I overcome this problem by exploiting the timing of 7 million fathers' layoffs when children are age 12–29 in administrative data for the United States. Layoffs dramatically reduce family income but only slightly reduce college enrollment, college quality, and early career earnings. These effects are consistent with a weak estimated propensity to spend on college out of marginal parental income. I find that larger effects based on firm closures stem from selection. (JEL I23, I24, I26, J13, J22, J31, J63)

scholarly journals Income Segregation and Intergenerational Mobility Across Colleges in the United States*

2020 ◽  
Vol 135 (3) ◽  
pp. 1567-1633 ◽  
Author(s):  
Raj Chetty ◽  
John N Friedman ◽  
Emmanuel Saez ◽  
Nicholas Turner ◽  
Danny Yagan
Keyword(s):  
United States ◽  
Low Income ◽  
Private Colleges ◽  
Test Scores ◽  
Intergenerational Mobility ◽  
The United States ◽  
High Income ◽  
Act Scores ◽  
Parental Income ◽  
Income Segregation

Abstract We construct publicly available statistics on parents’ incomes and students’ earnings outcomes for each college in the United States using deidentified data from tax records. These statistics reveal that the degree of parental income segregation across colleges is very high, similar to that across neighborhoods. Differences in postcollege earnings between children from low- and high-income families are much smaller among students who attend the same college than across colleges. Colleges with the best earnings outcomes predominantly enroll students from high-income families, although a few mid-tier public colleges have both low parent income levels and high student earnings. Linking these income data to SAT and ACT scores, we simulate how changes in the allocation of students to colleges affect segregation and intergenerational mobility. Equalizing application, admission, and matriculation rates across parental income groups conditional on test scores would reduce segregation substantially, primarily by increasing the representation of middle-class students at more selective colleges. However, it would have little effect on the fraction of low-income students at elite private colleges because there are relatively few students from low-income families with sufficiently high SAT/ACT scores. Differences in parental income distributions across colleges could be eliminated by giving low- and middle-income students a sliding-scale preference in the application and admissions process similar to that implicitly given to legacy students at elite private colleges. Assuming that 80% of observational differences in students’ earnings conditional on test scores, race, and parental income are due to colleges’ causal effects—a strong assumption, but one consistent with prior work—such changes could reduce intergenerational income persistence among college students by about 25%. We conclude that changing how students are allocated to colleges could substantially reduce segregation and increase intergenerational mobility, even without changing colleges’ educational programs.

scholarly journals Parental job loss and early child development in the Great Recession

2020 ◽  
Author(s):  
Gabriele Mari ◽  
Renske Keizer
Keyword(s):  
Child Development ◽  
Great Recession ◽  
Job Loss ◽  
Verbal Ability ◽  
Early Child Development ◽  
Family Investment ◽  
Parental Income ◽  
Early Child ◽  
The Great Recession ◽  
Novel Approach

Parental job loss may stifle early child development, and this might help explain why children of displaced parents fare worse later in life. To investigate this, the study relies on Irish cohort data (N = 6,303) collected around the Great Recession. A novel approach to mediation analysis is deployed, assessing predictions derived from models of family investment and family stress.Parental job loss is found to exacerbate problem behaviour at age 3 and 5, via the channels of parental income and maternal negative parenting. By depressing parental income, job loss also hampers children's verbal ability at age 3. This is tied to reduced affordability of formal childcare, highlighting a policy lever that might tame the intergenerational toll of job loss.

Intergenerational Mobility of Earnings and Income in Japan

2009 ◽  
Vol 9 (1) ◽  
Author(s):  
Atsuko Ueda
Keyword(s):  
Quantile Regression ◽  
Nonlinear Analysis ◽  
Linear Relation ◽  
Intergenerational Mobility ◽  
Economic Status ◽  
Downward Trend ◽  
Panel Survey ◽  
Parental Income

Abstract This paper presents estimates on the intergenerational mobility of economic status in Japan. We estimate the intergenerational elasticity of the earnings and income of offspring with respect to parental income using microdata from the 1993–2004 rounds of the Japanese Panel Survey of Consumers. The estimated intergenerational elasticity using predicted parental income is 0.41–0.46 for married sons, 0.30–0.38 for married daughters, and marginally less than 0.30 for single daughters. A downward trend in elasticity is also observed. Quantile regression does not suggest any particular relation between elasticity and quantiles. A nonlinear analysis of the relation between parental log income and log earnings of offspring illustrates an S-shaped relation for married sons and single daughters, and a linear relation for married daughters.

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