Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279145 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16447
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We examine the role of health shocks in childhood and parental background in transmitting intergenerational inequality. We use Danish administrative registry data (a setting with universal access to health care) and the quasi-random onset of Type 1 Diabetes in childhood to document substantial penalties in adult employment and labor market income at age 30. We document wide disparities in treatment effects and show that high-socioeconomic parents mitigate the adverse impacts of the health shock. This gradient is partly driven by differential impacts on health and human capital across the socioeconomic distribution. Maternal educational attainment matters for adoption of new and more advanced treatment regimens.
Subjects: 
intergenerational transmission of inequality
childhood health shocks
labor market outcomes
JEL: 
I12
I14
I24
Document Type: 
Working Paper

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