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Intergenerational Correlation of Labour Market Outcomes

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  • Nicolas Hérault

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • Guyonne Kalb

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

This paper focuses on the correlation of labour market outcomes of parents and children and investigates whether education is an important factor in this correlation, allowing for its potential endogeneity. Based on the Household, Income and Labour Dynamics in Australia (HILDA) data, the multivariate analyses show that men's labour market outcomes are affected by their fathers' labour market outcomes. The results show no significant intergenerational correlation of labour market outcomes for women when using the proportion of time in unemployment However, there is a significant relationship between the labour market outcomes of the mother and the proportion of time spent out of work by her daughter. Finally, the results show a significant relationship between parents' and children's education levels, indicating that there is an indirect effect of parental education on their children's labour market outcomes through education. Indeed, it is shown that education significantly reduces the proportion of time in unemployment and not in work.

Suggested Citation

  • Nicolas Hérault & Guyonne Kalb, 2009. "Intergenerational Correlation of Labour Market Outcomes," Melbourne Institute Working Paper Series wp2009n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2009n14
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    Cited by:

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    2. Michael Kind & John P. Haisken-DeNew, 2012. "Sons' Unexpected Long Term Scarring Due to Fathers' Unemployment," Melbourne Institute Working Paper Series wp2012n21, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    3. Silvia Mendolia & Nga Nguyen & Oleg Yerokhin, 2019. "The impact of parental illness on children’s schooling and labour force participation: evidence from Vietnam," Review of Economics of the Household, Springer, vol. 17(2), pages 469-492, June.
    4. Ubaldi, Michele & Picchio, Matteo, 2023. "Intergenerational Scars: The Impact of Parental Unemployment on Individual Health Later in Life," IZA Discussion Papers 16103, Institute of Labor Economics (IZA).
    5. Gimenez-Nadal, José Ignacio & Molina, José Alberto & Velilla, Jorge, 2020. "Short- vs Long-Term Intergenerational Correlations of Employment and Self-Employment in Europe," IZA Discussion Papers 12933, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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