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Intergenerational correlation of labor market outcomes

Author

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  • Nicolas Hérault

  • Guyonne Kalb

Abstract

This paper contributes to the relatively limited literature on the correlation of labor market outcomes of parents and their children. This literature is relevant to the larger literature on intergenerational income mobility since correlation in intergenerational labor market outcomes is one of the potential factors contributing to the intergenerational correlation of permanent incomes. In this paper, we consider the time spent in unemployment by both sons and daughters, while accounting for the potential endogeneity of education. Using the Household, Income and Labour Dynamics in Australia data, we find evidence of a positive correlation of labor market outcomes between fathers and sons and, to a lesser extent, between mothers and daughters. In addition, the results reveal a significant relationship between parents’ and children’s education levels, indicating that there is an indirect association of parental education with their children’s labor market outcomes through education. Copyright Springer Science+Business Media New York 2016

Suggested Citation

  • Nicolas Hérault & Guyonne Kalb, 2016. "Intergenerational correlation of labor market outcomes," Review of Economics of the Household, Springer, vol. 14(1), pages 231-249, March.
    • Handle: RePEc:kap:reveho:v:14:y:2016:i:1:p:231-249
    DOI: 10.1007/s11150-013-9218-5
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    Cited by:

    1. Ubaldi Michele & Picchio Matteo, 2025. "Intergenerational Scars: The Impact of Parental Unemployment on Individual Health Later in Life," German Economic Review, De Gruyter, vol. 26(1), pages 35-70.
    2. Eskelinen, Niko & Jernström, Laura & Salokangas, Henri, 2025. "Parental Job Loss and Children’s Socioeconomic Disadvantage," SocArXiv bs3fd_v1, Center for Open Science.
    3. Kind, Michael & Haisken-DeNew, John P., 2012. "Sons' Unexpected Long Term Scarring due to Fathers' Unemployment," Ruhr Economic Papers 375, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. Evangelia Papapetrou & Pinelopi Tsalaporta, 2017. "Is there a case for intergenerational transmission of female labour force participation and educational attainment? Evidence from Greece during the crisis," Working Papers 223, Bank of Greece.
    5. Silvia Mendolia & Nga Nguyen & Oleg Yerokhin, 2019. "Correction to: The impact of parental illness on children’s schooling and labour force participation: evidence from Vietnam," Review of Economics of the Household, Springer, vol. 17(2), pages 493-498, June.
    6. Gimenez-Nadal, José Ignacio & Molina, José Alberto & Velilla, Jorge, 2020. "Short- vs Long-Term Intergenerational Correlations of Employment and Self-Employment in Europe," IZA Discussion Papers 12933, IZA Network @ LISER.

    More about this item

    Keywords

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    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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