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Accounting for Intergenerational Income Persistence: Non-Cognitive Skills, Ability and Education

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Author Info
Jo Blanden
Paul Gregg
Lindsey Macmillan

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Abstract

We analyse in detail the factors that lead to intergenerational persistence among sons, where this is measured as the association between childhood family income and later adult earnings. We seek to account for the level of income persistence in the 1970 BCS cohort and also to explore the decline in mobility in the UK between the 1958 NCDS cohort and the 1970 cohort. The mediating factors considered are cognitive skills, noncognitive traits, educational attainment and labour market attachment. Changes in the relationships between these variables, parental income and earnings are able to explain over 80% of the rise in intergenerational persistence across the cohorts.

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Paper provided by Centre for the Economics of Education, LSE in its series CEE Discussion Papers with number 0073.

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Date of creation: Sep 2006
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Handle: RePEc:cep:ceedps:0073

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Related research
Keywords: Intergenerational mobility; children; skills;

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Find related papers by JEL classification:
J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

References listed on IDEAS
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  1. Janet Currie & Mark Stabile, 2004. "Child Mental Health and Human Capital Accumulation: The Case of ADHD," NBER Working Papers 10435, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  1. Cheti Nicoletti & John F. Ermisch, 2008. "Intergenerational Earnings Mobility: Changes across Cohorts in Britain," The B.E. Journal of Economic Analysis & Policy, Berkeley Electronic Press, vol. 7(2). [Downloadable!]
  2. Viviane Azevedo & Cesar Bouillon, 2009. "Social Mobility in Latin America: A Review of Existing Evidence," RES Working Papers 4634, Inter-American Development Bank, Research Department. [Downloadable!]
  3. Milanovic, Branko, 2008. "Where in the world are you ? Assessing the importance of circumstance and effort in a world of different mean country incomes and (almost) no migration," Policy Research Working Paper Series 4493, The World Bank. [Downloadable!]
    Other versions:
  4. Silke Anger & Guido Heineck, 2009. "Do Smart Parents Raise Smart Children?: The Intergenerational Transmission of Cognitive Abilities," SOEPpapers 156, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
  5. repec:ese:iserwp: is not listed on IDEAS
  6. Nicolas Hérault & Guyonne Kalb, 2009. "Intergenerational Correlation of Labour Market Outcomes," Melbourne Institute Working Paper Series wp2009n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  7. Checchi, Daniele & Fiorio, Carlo V. & Leonardi, Marco, 2008. "Intergenerational Persistence in Educational Attainment in Italy," IZA Discussion Papers 3622, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Paul Gregg & Katharina Janke & Carol Propper, 2008. "Handedness and Child Development," The Centre for Market and Public Organisation 08/198, Department of Economics, University of Bristol, UK. [Downloadable!]
  9. Paul Gregg & Carol Propper & Elizabeth Washbrook, 2008. "Understanding the Relationship between Parental Income and Multiple Child Outcomes: a decomposition analysis," The Centre for Market and Public Organisation 08/193, Department of Economics, University of Bristol, UK. [Downloadable!]
  10. Randall Reback, 2009. "Non-instructional Spending Improves Non-cognitive Outcomes:Discontinuity Evidence from a Unique Elementary School Counselor Financing System," Working Papers 0903, Barnard College, Department of Economics. [Downloadable!]
  11. Suncica Vujic & Pierre Koning & Dinand Webbink & Nick Martin, 2008. "The effect of childhood conduct disorder on human capital," CPB Discussion Papers 113, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  12. Erikson, Robert & Goldthorpe, John H., 2009. "Income and Class Mobility Between Generations in Great Britain: The Problem of Divergent Findings from the Data-sets of Birth Cohort Studies," Working Paper Series 4/2009, Swedish Institute for Social Research. [Downloadable!]
  13. Ham, Roger & Junankar, Pramod N. (Raja) & Wells, Robert, 2009. "Occupational Choice: Personality Matters," IZA Discussion Papers 4105, Institute for the Study of Labor (IZA). [Downloadable!]
  14. Jo Blanden & Paul Gregg & Lindsey Macmillan, 2008. "Intergenerational Persistence in Income and Social Class: The Impact of Increased Inequality," The Centre for Market and Public Organisation 08/195, Department of Economics, University of Bristol, UK. [Downloadable!]
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