Template-Type: ReDIF-Paper 1.0
Title: Parental Time Investment and Intergenerational Mobility
Author-Name: Minchul Yum
Author-Email: minchul.yum@uni-mannheim.de
Classification-JEL: E24, I24, J22
Keywords: Intergenerational elasticity; quintile transition matrix; parental time; college
education; misallocation

Abstract: This paper investigates di¤erences in parental time investment as a determinant of intergenerational persistence of lifetime income. Using a quantitative model that replicates a series of
important untargeted aspects of the data including the U.S. income quintile transition matrix,
I …nd that the parental time investment channel accounts for nearly half of the observed intergenerational income persistence. Heterogeneity in parental time investment across households
strengthens intergenerational association and hinders aggregate e¢ciency. Policy experiments
suggest that an e¤ective way of improving intergenerational mobility, aggregate output, and
welfare is to narrow discrepancies in the quantity and quality of parental time investments.

Note: 
Length: 52
Creation-Date: 2018-10
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp048
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2018_048v2