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

Author

Listed:
  • Yoosoon Chang
  • Steven N. Durlauf
  • Bo Hu
  • Joon 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 familial conditions for adult economic success.

Suggested Citation

  • Yoosoon Chang & Steven N. Durlauf & Bo Hu & Joon Park, 2025. "The Effects of Parental Income and Family Structure on Intergenerational Mobility: A Trajectories-Based Approach," NBER Working Papers 34179, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:34179
    Note: ED EFG LS PE TWP
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    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • D10 - Microeconomics - - Household Behavior - - - General
    • H0 - Public Economics - - General
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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