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The effect of parental wealth on children’s outcomes in early adulthood

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  • Eleni Karagiannaki

    (London School of Economics)

Abstract

This paper uses data from the British Household Panel Survey to examine the relationship between parental wealth and three child outcomes in early adulthood. Parental wealth is found to have a very strong positive correlation with children’s degree-level qualification attainment at age 25. This correlation is stronger at below-the-median wealth levels and remains strong after controlling for a wide range of confounding family characteristics. There is also evidence of a positive correlation between parental wealth and children’s employment probability and earnings. However, for both labour market outcomes the parental wealth gradient is rather weak and for the employment outcome the effect is largely mediated by children’s education.

Suggested Citation

  • Eleni Karagiannaki, 2017. "The effect of parental wealth on children’s outcomes in early adulthood," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(3), pages 217-243, September.
    • Handle: RePEc:spr:joecin:v:15:y:2017:i:3:d:10.1007_s10888-017-9350-1
    DOI: 10.1007/s10888-017-9350-1
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    3. Bonacini, Luca & Gallo, Giovanni & Scicchitano, Sergio, 2021. "Sometimes you cannot make it on your own. How household background influences chances of success in Italy," GLO Discussion Paper Series 832, Global Labor Organization (GLO).
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    6. Tesfagiorgis, Mussie & Tsegai, Samuel & Mengesha, Tedros & Craft, Jana & Tessema, Mussie, 2020. "The correlation between parental socioeconomic status (SES) and children’s academic achievement: The case of Eritrea," Children and Youth Services Review, Elsevier, vol. 116(C).

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