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Intergenerational Transmission of Skills and Differences in Labor Market Outcomes for Blacks and Whites

Author

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  • Okumura, Tsunao

    (Yokohama National University)

  • Usui, Emiko

    (Hitotsubashi University)

Abstract

This paper investigates, theoretically and empirically, differences between blacks and whites in the U.S. concerning the intergenerational transmission of occupational skills and the effects on sons' earnings. The father-son skill correlation is measured by the correlation coefficient (or cosine of the angle) between the father's skill vector and the son's skill vector. The skill vector comprises an individual's occupational characteristics from the Dictionary of Occupational Titles (DOT). According to data from the U.S. National Longitudinal Survey of Youth (NLSY79), white sons earn higher wages in occupations that require skills similar to those of their fathers, whereas black sons in such circumstances incur a wage loss. A large portion of the racial wage gap is explained by the father-son skill correlation. However, a significant unexplained racial wage gap remains at the lower tail of the wage distribution.

Suggested Citation

  • Okumura, Tsunao & Usui, Emiko, 2016. "Intergenerational Transmission of Skills and Differences in Labor Market Outcomes for Blacks and Whites," IZA Discussion Papers 9662, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9662
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    Cited by:

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    3. Velilla, Jorge & Molina, José Alberto & Ortega, Raquel, 2018. "Why older workers become entrepreneurs? International evidence using fuzzy set methods," The Journal of the Economics of Ageing, Elsevier, vol. 12(C), pages 88-95.
    4. Velilla, Jorge, 2021. "Regional and national results on entrepreneurship using GEM data," MPRA Paper 110323, University Library of Munich, Germany.
    5. Okumura Tsunao & Usui Emiko, 2014. "Do Parents’ Social Skills Influence Their Children’s Sociability?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(3), pages 1-36, July.
    6. Liwen Chen & John Gordanier & Orgul Ozturk, 2019. "Task Followers and Labor Market Outcomes," Journal of Labor Research, Springer, vol. 40(2), pages 181-201, June.
    7. Gascón Salillas, Patricia, 2020. "La actividad emprendedora: Análisis transversal en la Comunidad Foral de Navarra [Entrepreneurship activity: Cross-sectional analysis in the Region of Navarra]," MPRA Paper 99386, University Library of Munich, Germany.
    8. Velilla, Jorge, 2018. "The entrepreneurial activity using GEM data: evidence for Spain (national and regional) and for Europe," MPRA Paper 85568, University Library of Munich, Germany.
    9. Chen, Liwen & Gordanier, John & Ozturk, Orgul, 2016. "Following (Not Quite) in Your Father’s Footsteps: Task Followers and Labor Market Outcomes," MPRA Paper 76041, University Library of Munich, Germany.

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    More about this item

    Keywords

    black-white differences; occupational characteristics; intergenerational transmission; multidimensional skills;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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