On the Intergenerational Persistence of Work Hours
AbstractThis paper studies the intergenerational persistence of work hours. In particular, I look at the correlation of hours between fathers and sons in the U.S. Using data from the Panel study of Income Dynamics, I find a strong persistence in the permanent component of hours worked. I investigate the extent this correlation is explained by (i) persistence in wages, (ii) correlation in leisure preferences, and (iii) intergenerational wealth transfers. I also examine the role of work effort in the transmission of earnings across generations. To this end, I provide a quantitative model of intergenerational transmission of human capital and wealth. I find that the observed persistence in hours is mostly explained by the intergenerational correlation of leisure preferences. Moreover, the latter also plays an important role in accounting for the similarities in earnings between parents and children. However, the transmission of wages across generations explains a larger fraction of the earnings dynamics
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Bibliographic InfoPaper provided by Society for Economic Dynamics in its series 2006 Meeting Papers with number 226.
Date of creation: 03 Dec 2006
Date of revision:
Contact details of provider:
Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
Web page: http://www.EconomicDynamics.org/society.htm
More information through EDIRC
Intergenerational mobility; labor supply; preference transmission;
Find related papers by JEL classification:
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- D19 - Microeconomics - - Household Behavior - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-13 (All new papers)
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