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On the Intergenerational Persistence of Work Hours

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  • Manuel Toledo

    (Economics University of Rochester)

Abstract

This 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

Suggested Citation

  • Manuel Toledo, 2006. "On the Intergenerational Persistence of Work Hours," 2006 Meeting Papers 226, Society for Economic Dynamics.
    • Handle: RePEc:red:sed006:226
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    References listed on IDEAS

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    Cited by:

    1. Carlos Bethencourt & Lars Kunze, 2019. "Like Father, Like Son: Inheriting and Bequeathing," German Economic Review, Verein für Socialpolitik, vol. 20(2), pages 194-216, May.
    2. repec:zbw:rwirep:0318 is not listed on IDEAS
    3. Lars Kunze, 2012. "Like Father, Like Son: Inheriting and Bequeathing," Ruhr Economic Papers 0318, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    4. Wilhelm, Mark Ottoni & Brown, Eleanor & Rooney, Patrick M. & Steinberg, Richard, 2008. "The intergenerational transmission of generosity," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2146-2156, October.

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    More about this item

    Keywords

    Intergenerational mobility; labor supply; preference transmission;
    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
    • D19 - Microeconomics - - Household Behavior - - - Other

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