IDEAS home Printed from https://ideas.repec.org/p/uto/dipeco/202013.html
   My bibliography  Save this paper

Parental Education and Sons’ Earnings: A “Beyond the Mean†Approach along the Sons’ Earnings Distributions

Author

Abstract

This paper offers evidence on the parental education and sons’ earn-ings relationship by analyzing the father and mother educationgradientacross the full distribution of sons’ earnings. It uses an unconditionalquantile approach based on recentered influence function regressions andapplies an Oaxaca-Blinder decomposition at various quantiles of the earn-ing distribution to explain time, gender and geographical differentials inearnings. Using six waves of the Survey of Income and Wealth (from2004to 2014) for Italy, I find evidence of higher returns to family education inthe upper percentiles of the distribution of son’s earnings with the prob-ability of ending up in high deciles being significantly correlated with theeducation level of the father. Results show an important heterogeneity inthe association of parental education as well as of individual covariates tosons’ earnings across time, gender and geographical areas of the countrywhich varies significantly along the earning distribution and accounts fora substantial percentage of the differentials in observed earnings.

Suggested Citation

  • Zotti, Roberto, 2020. "Parental Education and Sons’ Earnings: A “Beyond the Mean†Approach along the Sons’ Earnings Distributions," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202013, University of Turin.
  • Handle: RePEc:uto:dipeco:202013
    as

    Download full text from publisher

    File URL: https://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2020dip/wp_13_2020.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Arnaud Chevalier & Colm Harmon & Vincent O’ Sullivan & Ian Walker, 2013. "The impact of parental income and education on the schooling of their children," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-22, December.
    2. Michele Raitano & Francesco Vona, 2015. "Direct and Indirect Influences of Parental Background on Children's Earnings: a Comparison across Countries and Genders," Manchester School, University of Manchester, vol. 83(4), pages 423-450, July.
    3. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    4. repec:hal:spmain:info:hdl:2441/4rs0hmrl0s8farskm2usmmbu0s is not listed on IDEAS
    5. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
    6. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 1, pages 1-102, Elsevier.
    7. Miles Corak & Andrew Heisz, 1999. "The Intergenerational Earnings and Income Mobility of Canadian Men: Evidence from Longitudinal Income Tax Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 504-533.
    8. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    9. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, May.
    10. Paolo Naticchioni & Michele Raitano & Claudia Vittori, 2016. "La Meglio Gioventù: earnings gaps across generations and skills in Italy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(2), pages 233-264, August.
    11. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    12. Matt Dickson & Paul Gregg & Harriet Robinson, 2016. "Early, Late or Never? When Does Parental Education Impact Child Outcomes?," Economic Journal, Royal Economic Society, vol. 126(596), pages 184-231, October.
    13. Nathan D. Grawe, 2004. "Reconsidering the Use of Nonlinearities in Intergenerational Earnings Mobility as a Test for Credit Constraints," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
    14. Bernt Bratsberg & Knut Røed & Oddbjørn Raaum & Robin Naylor & Markus Ja¨ntti & Tor Eriksson & Eva O¨sterbacka, 2007. "Nonlinearities in Intergenerational Earnings Mobility: Consequences for Cross-Country Comparisons," Economic Journal, Royal Economic Society, vol. 117(519), pages 72-92, March.
    15. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 257-298, National Bureau of Economic Research, Inc.
    16. Gabriela Schütz & Heinrich W. Ursprung & Ludger Wößmann, 2008. "Education Policy and Equality of Opportunity," Kyklos, Wiley Blackwell, vol. 61(2), pages 279-308, May.
    17. Michele Raitano & Francesco Vona, 2015. "Measuring the link between intergenerational occupational mobility and earnings: evidence from eight European countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(1), pages 83-102, March.
    18. Eric R. Eide & Mark H. Showalter, 1999. "Factors Affecting the Transmission of Earnings across Generations: A Quantile Regression Approach," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 253-267.
    19. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    20. Chevalier, Arnaud & Harmon, Colm & O'Sullivan, Vincent & Walker, Ian, 2013. "The Impact of Parental Income and Education on the Schooling of Children," Papers WP468, Economic and Social Research Institute (ESRI).
    21. Michele Raitano & Claudia Vittori & Francesco Vona, 2016. "The effect of parental background along the sons’ earnings distribution: does one pattern fit for all?," Applied Economics Letters, Taylor & Francis Journals, vol. 23(15), pages 1073-1078, October.
    22. John Jerrim, 2017. "The Link between Family Background and Later Lifetime Income: How Does the UK Compare with Other Countries?," Fiscal Studies, Institute for Fiscal Studies, vol. 38, pages 49-79, March.
    23. Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
    24. Matt Dickson & Paul Gregg & Harriet Robinson, 2016. "Early, Late or Never? When Does Parental Education Impact Child Outcomes?," Economic Journal, Royal Economic Society, vol. 126(596), pages 184-231.
    25. Espen Bratberg & Øivind Anti Nilsen & Kjell Vaage, 2005. "Intergenerational Earnings Mobility in Norway: Levels and Trends," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 419-435, September.
    26. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-1189, December.
    27. Samuel Bowles & Herbert Gintis, 2002. "The Inheritance of Inequality," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 3-30, Summer.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jeremiah Richey & Alicia Rosburg, 2020. "Decomposing joint distributions via reweighting functions: an application to intergenerational economic mobility," Econometric Reviews, Taylor & Francis Journals, vol. 39(6), pages 541-558, July.
    2. Michele Raitano & Francesco Vona, 2015. "Measuring the link between intergenerational occupational mobility and earnings: evidence from eight European countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(1), pages 83-102, March.
    3. Raitano Michele & Vona Francesco, 2018. "From the Cradle to the Grave: The Influence of Family Background on the Career Path of Italian Men," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 80(6), pages 1062-1088, December.
    4. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. repec:hal:spmain:info:hdl:2441/7d426vdmrr8am8khcm1fvu5adl is not listed on IDEAS
    6. repec:hal:spmain:info:hdl:2441/1vv4tl36f973o2k8aljdj1kll is not listed on IDEAS
    7. Paul Gregg & Lindsey Macmillan & Claudia Vittori, 2015. "Nonlinear Estimation of Lifetime Intergenerational Economic Mobility and the Role of Education," DoQSS Working Papers 15-03, Quantitative Social Science - UCL Social Research Institute, University College London.
    8. Raitano Michele & Vona Francesco, 2018. "From the Cradle to the Grave: The Influence of Family Background on the Career Path of Italian Men," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 80(6), pages 1062-1088, December.
    9. Kourtellos, Andros & Marr, Christa & Tan, Chih Ming, 2020. "Local Intergenerational Mobility," European Economic Review, Elsevier, vol. 126(C).
    10. repec:hal:spmain:info:hdl:2441/4rs0hmrl0s8farskm2usmmbu0s is not listed on IDEAS
    11. Raitano, Michele & Vona, Francesco, 2021. "Nepotism vs. Specific Skills: The effect of professional liberalization on returns to parental background of Italian lawyers," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 489-505.
    12. Richey, Jeremiah & Rosburg, Alicia, 2016. "Understanding intergenerational economic mobility by decomposing joint distributions," MPRA Paper 72665, University Library of Munich, Germany.
    13. repec:hal:spmain:info:hdl:2441/6dffcvpj8t96bpc00heumik4e0 is not listed on IDEAS
    14. Jeremiah Richey & Alicia Rosburg, 2018. "Decomposing economic mobility transition matrices," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(1), pages 91-108, January.
    15. Mathias Huebener, 2017. "Intergenerational Effects of Education on Risky Health Behaviours and Long-Term Health," Discussion Papers of DIW Berlin 1709, DIW Berlin, German Institute for Economic Research.
    16. Nguyen, Ha, 2015. "The evolution of the gender test score gap through seventh grade: New insights from Australia using quantile regression and decomposition," MPRA Paper 67586, University Library of Munich, Germany.
    17. Nicoletti, Cheti, 2008. "Multiple sample selection in the estimation of intergenerational occupational mobility," ISER Working Paper Series 2008-20, Institute for Social and Economic Research.
    18. Paul Gregg & Lindsey Macmillan & Claudia Vittori, 2019. "Intergenerational income mobility: access to top jobs, the low-pay no-pay cycle and the role of education in a common framework," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(2), pages 501-528, April.
    19. Anna Christina D'Addio, 2007. "Intergenerational Transmission of Disadvantage: Mobility or Immobility Across Generations?," OECD Social, Employment and Migration Working Papers 52, OECD Publishing.
    20. Michele Raitano & Francesco Vona & Claudia Vittori, 2015. "The effect of parental background along the son's earnings distribution : does one model fit for all?," Working Papers hal-03459749, HAL.
    21. Huong Thu Le & Ha Trong Nguyen, 2018. "The evolution of the gender test score gap through seventh grade: new insights from Australia using unconditional quantile regression and decomposition," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-42, December.
    22. Daniel D. Schnitzlein, 2016. "A New Look at Intergenerational Mobility in Germany Compared to the U.S," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 62(4), pages 650-667, December.
    23. Conti, Valentina & Kopinska, Joanna, 2018. "The role of parental cognitive ageing in the intergenerational mobility of cognitive abilities," Labour Economics, Elsevier, vol. 51(C), pages 38-47.
    24. Inmaculada García-Mainar & Víctor M. Montuenga, 2020. "Occupational Prestige and Fathers’ Influence on Sons and Daughters," Journal of Family and Economic Issues, Springer, vol. 41(4), pages 706-728, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uto:dipeco:202013. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Piero Cavaleri or Marina Grazioli (email available below). General contact details of provider: https://edirc.repec.org/data/detorit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.