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

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  • 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)

Abstract

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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  • Gayle, George-Levi & Golan, Limor & Soytas, Mehmet A., 2015. "What Accounts for the Racial Gap in Time Allocation and Intergenerational Transmission of Human Capital?," Working Papers 2015-18, Federal Reserve Bank of St. Louis.
  • Handle: RePEc:fip:fedlwp:2015-018
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    Cited by:

    1. Francesconi, Marco & Heckman, James J., 2016. "Symposium on Child Development and Parental Investment: Introduction," IZA Discussion Papers 9977, Institute for the Study of Labor (IZA).
    2. Francesconi, Marco & Heckman, James J, 2015. "Symposium on Child Development and Parental Investment: Introduction," Economics Discussion Papers 16868, University of Essex, Department of Economics.
    3. Elizabeth M. Caucutt & Lance Lochner, 2012. "Early and Late Human Capital Investments, Borrowing Constraints, and the Family," NBER Working Papers 18493, National Bureau of Economic Research, Inc.
    4. Sneha Elango & Jorge Luis García & James J. Heckman & Andrés Hojman, 2015. "Early Childhood Education," NBER Chapters,in: Economics of Means-Tested Transfer Programs in the United States, volume 2, pages 235-297 National Bureau of Economic Research, Inc.
    5. Weerachart Kilenthong & Dinh Thi Ngoc Tu, 2017. "Parental Time and Material Investments in Rural Thailand," PIER Discussion Papers 68, Puey Ungphakorn Institute for Economic Research, revised Sep 2017.
    6. James J. Heckman & Stefano Mosso, 2014. "The Economics of Human Development and Social Mobility," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 689-733, August.
    7. Gayle, George-Levi & Golan, Limor & Soytas, Mehmet A., 2015. "Estimation of Dynastic Life-Cycle Discrete Choice Models," Working Papers 2015-20, Federal Reserve Bank of St. Louis.
    8. Nezih Guner & Christopher Rauh & Elizabeth Caucutt, 2017. "Is Marriage for White People? Incarceration and the Racial Marriage Divide," 2017 Meeting Papers 779, Society for Economic Dynamics.
    9. Gayle, George-Levi & Golan, Limor & Soytas, Mehmet A., 2015. "What is the source of the intergenerational correlation in earnings?," Working Papers 2015-19, Federal Reserve Bank of St. Louis.
    10. Sebastian Galiani & Matthew Staiger & Gustavo Torrens, 2017. "When Children Rule: Parenting in Modern Families," NBER Working Papers 23087, National Bureau of Economic Research, Inc.
    11. Chan, Marc K. & Liu, Kai, 2015. "Life-Cycle and Intergenerational Effects of Child Care Reforms," IZA Discussion Papers 9377, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Life-cycle dynastic models; Household allocation of resource; Estimation of dynamic game of complete information; Human capital production function; Quantity-quality trade-off.;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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