Intergenerational correlation of labor market outcomes
G Kalb, N Herault
Review of Economics of the Household | Springer US | Published : 2016
This paper contributes to the relatively limited literature on the correlation of labor market outcomes of parents and their children. This literature is relevant to the larger literature on intergenerational income mobility since correlation in intergenerational labor market outcomes is one of the potential factors contributing to the intergenerational correlation of permanent incomes. In this paper, we consider the time spent in unemployment by both sons and daughters, while accounting for the potential endogeneity of education. Using the Household, Income and Labour Dynamics in Australia data, we find evidence of a positive correlation of labor market outcomes between fathers and sons and..View full abstract
This research was commissioned by the Australian Government Department of Education, Employment and Workplace Relations (DEEWR) under the Social Policy Research Services Agreement (2005-2009) with the Melbourne Institute of Applied Economic and Social Research. The paper uses the confidentialized unit record file from the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA's) Household, Income and Labour Dynamics in Australia Survey, which is managed by the Melbourne Institute of Applied Economic and Social Research. The views expressed in this paper are those of the authors alone and do not represent the views of the Minister for Families, Housing, Community Services and Indigenous Affairs, FaHCSIA, DEEWR or the Commonwealth Government. Additional funding to support this research was provided by the Faculty of Economics and Commerce, The University of Melbourne. We are grateful to Deborah Cobb-Clark, John Creedy, Dean Hyslop, Moshe Justman, Matthias Sinning, two anonymous referees and participants at the Intergenerational Workshop at the Australian National University for helpful comments and discussions.