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Intergenerational Mobility and the Timing of Parental Income

Author

Listed:
  • Pedro Carneiro
  • Italo Lopez Garcia
  • Kjell G. Salvanes
  • Emma Tominey

Abstract

We extend the standard intergenerational mobility literature by modelling individual outcomes as a function of the whole history of parental income, using data from Norway. We find that, conditional on permanent income, education is maximized when income is balanced between the early childhood and middle childhood years. In addition, there is an advantage to having income occur in late adolescence rather than in early childhood. These result are consistent with a model of parental investments in children with multiple periods of childhood, income shocks, imperfect insurance, dynamic complementarity, and uncertainty about the production function and the ability of the child.

Suggested Citation

  • Pedro Carneiro & Italo Lopez Garcia & Kjell G. Salvanes & Emma Tominey, 2015. "Intergenerational Mobility and the Timing of Parental Income," Discussion Papers 15/20, Department of Economics, University of York.
  • Handle: RePEc:yor:yorken:15/20
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    References listed on IDEAS

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    More about this item

    Keywords

    Child human capital; intergenerational mobility; parental income timing; semiparametric estimation.;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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