Employment Prospects Across Generations and the Intergenerational Persistence of Earnings

Bello, Salvatore Lo; Morchio, Iacopo

doi:10.2139/ssrn.3631750

Cited by 3 publications

(5 citation statements)

References 26 publications

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“…3434 This is a common assumption in the literature on networks; see, for instance, Calvó‐Armengol and Jackson (2007). This assumption is also consistent with the empirical literature (Magruder (2010), Cingano and Rosolia (2012), Lo Bello and Morchio (2020)). …”

supporting

confidence: 91%

“…In particular, we focus on differences in job‐finding probabilities (a proxy for employment prospects) and wages 9 . To this end, we use the British Household Panel Survey (BHPS), and in particular, the data set constructed by Lo Bello and Morchio (2020). We document two key facts: first, occupational followers tend to find jobs faster than movers; second, they earn lower wages on average.…”

Section: Empirical Evidencementioning

confidence: 99%

“…1010 We exclude women from the sample for several reasons: (i) employment rates of men and women are substantially different, especially for the parent generations; (ii) to maintain comparability to the rest of the literature, which also excludes women; (iii) in previous work we found that, although occupational following is also prevalent among women, there is no suggestive evidence that mothers serve as network providers (see Lo Bello & Morchio 2020). …”

mentioning

confidence: 99%

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Like father, like son: Occupational choice, intergenerational persistence and misallocation

Bello

Morchio

2022

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We develop a dynamic quantitative model of occupational choice and search frictions with multiple channels of intergenerational transmission (comparative advantage, social contacts, and preferences), and use it to decompose the occupational persistence observed in the UK. In the model, workers who choose their father's occupation find jobs faster and earn lower wages, which is consistent with patterns found in UK data. Quantitatively, parental networks account for 79% of total persistence. Shutting down parental networks or the transmission of preferences improves the allocation of workers, and thus yields welfare gains, while removing the transmission of comparative advantage generates welfare losses.

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supporting

confidence: 91%

Section: Empirical Evidencementioning

confidence: 99%

mentioning

confidence: 99%

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Like father, like son: Occupational choice, intergenerational persistence and misallocation

Bello

Morchio

2022

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“…Black and Devereux (2011) and Jäntti and Jenkins (2015) review the literature. There are additional related studies that focus on other dimensions of intergenerational persistence, such as wealth (Charles and Hurst, 2003), consumption expenditures (Charles et al, 2014;Waldkirch et al, 2004), occupations (Bello and Morchio, 2017;Corak and Piraino, 2011), incarceration and criminal behavior (Dobbie et al, 2018;Meghir et al, 2012), health (Bj örkegren et al, 2019;Johnston et al, 2013), and employment and welfare dependency (Li and Goetz, 2019;Lo Bello and Morchio, 2020). differences in income trajectories and timing of educational attainment.…”

Section: Introductionmentioning

confidence: 99%

Intergenerational Transmission of Family Influence

Eshaghnia¹,

Heckman²,

Landersø³

et al. 2022

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This paper studies intergenerational mobility-the transmission of family influence. We develop and estimate measures of lifetime resources (income and wealth) motivated by economic theory that account for generational differences in life-cycle trajectories, uncertainty, and credit constraints. These measures of lifetime resources allow us to estimate the transmission of welfare and lifetime resources at different stages of the life cycle. We compare these measures with traditional ones such as wage income and disposable income measured over narrow windows of age that are used to proxy lifetime wealth. The performance of proxy measures is poor. Parents' expected lifetime resources are stronger predictors of many important child outcomes (including children's own expected lifetime resources and education) than the income measures traditionally used in the literature on social mobility. Changes in patterns of educational attainment across generations explain most of the intergenerational change in life-cycle dynamics. While relative mobility is overstated by the traditional income measures, absolute upward mobility is understated. Recent generations have higher welfare and are better off compared to their parents.

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“…Black and Devereux (2011) and Jäntti and Jenkins (2015) review the literature. There are additional related studies that focus on other dimensions of intergenerational persistence, such as wealth (Charles and Hurst, 2003), consumption expenditures (Charles et al, 2014;Waldkirch et al, 2004), occupations (Bello and Morchio, 2017;Corak and Piraino, 2011), incarceration and criminal behavior (Dobbie et al, 2018;Meghir et al, 2012), health (Bj örkegren et al, 2019Johnston et al, 2013), and employment and welfare dependency (Li and Goetz, 2019;Lo Bello and Morchio, 2020). di erences in income trajectories and timing of educational attainment.…”

Section: Conclusion 52 1 Introductionmentioning

confidence: 99%