Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/149583 
Authors: 
Year of Publication: 
2016
Series/Report no.: 
Working Paper Series No. 16-06
Publisher: 
University of Mannheim, Department of Economics, Mannheim
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 effective 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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