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The Impact of Parental Education on Earnings: New Wine in an Old Bottle?

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Listed:
  • John Hudson

    (University of Bath)

  • John Sessions

    (University of Bath)

Abstract

We examine the impact of parental education on the shape of an individual’s experience-earnings profile. A number of factors suggest that parental education will affect the ability of an individual to translate labor market experience into earnings. Our empirical analysis of US data suggests that this is indeed the case. Higher parental education shifts the earnings profile significantly to the left – the profile of individuals with parents who both have 15 years of education peaks at 16 years of experience when their wages are 52% (24%) greater than those whose parents both have only 5 (10) years of education.

Suggested Citation

  • John Hudson & John Sessions, 2009. "The Impact of Parental Education on Earnings: New Wine in an Old Bottle?," Department of Economics Working Papers 14/09, University of Bath, Department of Economics.
    • Handle: RePEc:eid:wpaper:14762
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    References listed on IDEAS

    as
    1. Sarah Brown & John G. Sessions, 2006. "Some Evidence on the Relationship between Performance-Related Pay and the Shape of the Experience-Earnings Profile," Southern Economic Journal, John Wiley & Sons, vol. 72(3), pages 660-676, January.
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    More about this item

    Keywords

    earnings; human capital; parental education;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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