Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/149583
Authors: 
Yum, Minchul
Year of Publication: 
2016
Series/Report no.: 
Working Paper Series, Department of Economics, University of Mannheim 16-06
Abstract: 
This paper investigates parental time investment in children prior to formal schooling as a source of intergenerational income persistence in the U.S. I develop a dynamic general equilibrium model where lifetime income endogenously persists across generations through multiple channels. My model replicates a series of important untargeted aspects of the data including the U.S. income quintile transition matrix. I …find that the parental time investment channel accounts for nearly 40 percent of the observed intergenerational income persistence. Policy experiments suggest that e¤ective ways of improving mobility should focus on narrowing discrepancies in the quantity and quality of parental time investments.
Subjects: 
parental time
human capital investment
intergenerational persistence
college education
JEL: 
E24
I24
J22
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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