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The Effects of Parental Income and Family Structure on Intergenerational Mobility: A Trajectories‐Based Approach

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  • Yoosoon Chang
  • Steven N. Durlauf
  • Bo Hu
  • Joon Y. Park

Abstract

We examine how parental income and family structure during childhood and adolescence affect adult income, emphasizing the timing of these effects. Using an ordered multinomial probability model with functional covariates, we find that these familial influences are strongest in middle childhood and adolescence. We also uncover a complementary relationship in the effects of income and family structure trajectories during key developmental periods. By flexibly controlling for personal and family characteristics using nonparametric methods, our approach effectively handles high‐dimensional covariates. The results advance the understanding of intergenerational income mobility and highlight the long‐term importance of early‐life familial conditions for adult economic success.

Suggested Citation

  • Yoosoon Chang & Steven N. Durlauf & Bo Hu & Joon Y. Park, 2026. "The Effects of Parental Income and Family Structure on Intergenerational Mobility: A Trajectories‐Based Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 41(5), pages 655-668, August.
    • Handle: RePEc:wly:japmet:v:41:y:2026:i:5:p:655-668
    DOI: 10.1002/jae.70065
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