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What Accounts for the Racial Gap in Time Allocation and Intergenerational Transmission of Human Capital?

Listed author(s):
  • Gayle, George-Levi

    ()

    (Federal Reserve Bank of St. Louis)

  • Golan, Limor

    ()

    (Federal Reserve Bank of St. Louis)

  • Soytas, Mehmet A.

    (Graduate School of Business, Ozyegin University)

This paper analyzes the sources of the racial difference in the intergenerational transmission of human capital by developing and estimating a dynastic model of parental time and monetary inputs in early childhood with endogenous fertility, home hours, labor supply, marriage, and divorce. It finds that the racial differences in the marriage matching patterns lead to racial differences in labor supply and home hours of couples. Although both the black-white labor market earnings and marriage market gaps are important sources of the black-white achievement gap, the assortative mating and divorce probabilities racial gaps accounts for a larger fraction of it.

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Paper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 2015-18.

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Length: 98 pages
Date of creation: 27 Feb 2015
Handle: RePEc:fip:fedlwp:2015-018
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