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An Intergenerational Model of Wages, Hours, and Earnings

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  • Joseph G. Altonji
  • Thomas A. Dunn

Abstract

We develop a model in which a set of unobserved parental and sibling factors drives wages and work preferences. These factors lead to similarities within families in wages, work hours, and earnings. We estimate the model using data on parents and siblings in the National Longitudinal Surveys. We find that parental and sibling wage factors influence the wages of both sons and daughters. We also find strong similarities in work hours that run along gender lines and are due primarily to linkages in preferences. The effect of wages on earnings is direct rather than through a labor supply response.

Suggested Citation

  • Joseph G. Altonji & Thomas A. Dunn, 2000. "An Intergenerational Model of Wages, Hours, and Earnings," Journal of Human Resources, University of Wisconsin Press, vol. 35(2), pages 221-258.
  • Handle: RePEc:uwp:jhriss:v:35:y:2000:i:2:p:221-258
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    5. Griliches, Zvi, 1979. "Sibling Models and Data in Economics: Beginnings of a Survey," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 37-64, October.
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    7. Behrman, Jere R & Taubman, Paul, 1990. "The Intergenerational Correlation between Children's Adult Earnings and Their Parents' Income: Result from the Michigan Panel Survey of Income Dynamics," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 36(2), pages 115-127, June.
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    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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