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Intergenerational correlation of labor market outcomes

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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:

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    2. Michele Ubaldi & Matteo Picchio, 2023. "Intergenerational Scars: The Impact of Parental Unemployment on Individual Health Later in Life," SOEPpapers on Multidisciplinary Panel Data Research 1188, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Michael Kind & John P. Haisken-DeNew, 2012. "Sons' Unexpected Long Term Scarring Due to Fathers' Unemployment," Melbourne Institute Working Paper Series wp2012n21, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    4. Silvia Mendolia & Nga Nguyen & Oleg Yerokhin, 2019. "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 469-492, June.
    5. 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, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Labor market outcomes; Unemployment; Education; Intergenerational correlation; J62; J64; I21;
    All these keywords.

    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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