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The Intergenerational Correlation of Employment

Author

Listed:
  • Gabriela Galassi
  • David Koll
  • Lukas Mayr

Abstract

We document a substantial positive correlation of employment status between mothers and their offspring in the United States, linking data from the National Longitudinal Survey of Youth 1979 (NLSY79) and the NLSY79 Children and Young Adults. Relative to a never employed mother, one who is employed throughout her working-age life increases the probability of her offspring's employment by 11 per- cent in each given year, after controlling for ability, education, fertility, and wealth. The intergenerational transmission of maternal employment is stronger to daughters than to sons, and it is higher for low-educated and low-income mothers. Investigat- ing potential mechanisms, we provide suggestive evidence for a role-model channel, through which labor force participation is transmitted. Offspring, especially daugh- ters, seem to emulate the example of their mother when they observe her working. By contrast, we are able to rule out several alternative candidate explanations such as network effects, occupation-specific human capital and local conditions of the labor market.

Suggested Citation

  • Gabriela Galassi & David Koll & Lukas Mayr, 2021. "The Intergenerational Correlation of Employment," CRC TR 224 Discussion Paper Series crctr224_2021_309, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2021_309
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    File URL: https://www.crctr224.de/research/discussion-papers/archive/dp309
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    More about this item

    Keywords

    Intergenerational transmission; preferences for work; female employment;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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