2021
DOI: 10.1086/712443
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Intergenerational Mobility and the Timing of Parental Income

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 find 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 … Show more

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Cited by 60 publications
(55 citation statements)
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“…Parental background could moderate the impact of mental health problems on later socioeconomic outcomes through possibilities to support, invest and offer opportunities during the childhood and youth. For example, in Norway and Denmark adult outcomes of children are found to be higher when parental income flow is balanced over childhood, and higher parental income is an advantage especially in the early and late periods of childhood (Carneiro et al 2020;Lesner 2018). Lower resources might affect skill formation, networks and decision making of the adolescent (Lesner 2018).…”
Section: Discussionmentioning
confidence: 99%
“…Parental background could moderate the impact of mental health problems on later socioeconomic outcomes through possibilities to support, invest and offer opportunities during the childhood and youth. For example, in Norway and Denmark adult outcomes of children are found to be higher when parental income flow is balanced over childhood, and higher parental income is an advantage especially in the early and late periods of childhood (Carneiro et al 2020;Lesner 2018). Lower resources might affect skill formation, networks and decision making of the adolescent (Lesner 2018).…”
Section: Discussionmentioning
confidence: 99%
“…Hvidberg et al (2022) argue that one's position within the income distribution can shape views on the fairness of inequalities in society. Carneiro et al (2021) show that children whose parents have relatively high income in early-childhood and low income in middle-childhood fare better in terms of later education and income than children whose parents exhibit the opposite income profile. In this regard, our paper suggests a way to measure the 3 Murphy and Weinhardt (2020) and Pagani et al (2021) actually use grades obtained at end-of-year national exams rather than standardized test grades.…”
Section: Introductionmentioning
confidence: 90%
“…4 However, as we discuss in more detail in appendix B, by the late 1930s a 3 Earlier US-based work (e.g., Solon 1992;Mazumder 2005) relied on relatively small samples, making it impossible to document differences in mobility rates at the local level. A recent body of work uses larger samples of families in the Nordic countries (e.g., Black, Devereux, and Salvanes 2005;Meghir and Palme 2005;Aakvik, Salvanes, and Mazumder 2010;Lundborg, Nilsson, and Rooth 2014;Carneiro et al 2021). Most of this work focuses on family-specific shocks or on national school reforms.…”
Section: A Historical Settingmentioning
confidence: 99%