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Intergenerational Mobility and the Timing of Parental Income

Author

Listed:
  • Carneiro, Pedro

    (University College London)

  • Lopez Garcia, Italo

    (RAND Corporation)

  • Salvanes, Kjell Gunnar

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • 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 nd 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 Gunnar & Tominey, Emma, 2015. "Intergenerational Mobility and the Timing of Parental Income," Discussion Paper Series in Economics 23/2015, Norwegian School of Economics, Department of Economics.
    • Handle: RePEc:hhs:nhheco:2015_023
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    References listed on IDEAS

    as
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    More about this item

    Keywords

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

    JEL classification:

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

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