eprintid: 25704 rev_number: 6 eprint_status: archive userid: 1482 importid: 105 dir: disk0/00/02/57/04 datestamp: 2018-05-16 13:47:45 lastmod: 2024-04-19 10:02:32 status_changed: 2018-05-16 13:47:45 type: article metadata_visibility: show creators_name: Lee, Tim creators_name: Seshadri, Ananth creators_idrefppn: 086457705 title: On the Intergenerational Transmission of Economic Status ispublished: pub subjects: subjects_ECO abstract: We present a model in which human capital investments occur over the life-cycle and across generations, à la Becker and Tomes (1986), also featuring incomplete markets and government transfer programs. The human capital technology features multiple stages of investment during childhood, a college decision, and on-the-job accumulation. The model can jointly explain a wide range of intergenerational relationships, such as the intergenerational elasticities (IGE) of lifetime earnings, college attainment and wealth, while remaining empirically consistent with cross-sectional inequality. Much of life-cycle inequality is determined early in life, which in turn is explained in large part by parental background. The model implies that this is mainly due to early investments in children made by young parents, so life-cycle constraints these parents face are important for understanding the persistence of economic status across generations. Education subsidies, especially early on, can significantly reduce the intergenerational persistence of economic status. date: 2019 date_type: published publisher: University of Chicago Press id_number: 10.1086/700765 official_url: http://tse-fr.eu/pub/32077 faculty: tse divisions: tse language: en has_fulltext: FALSE view_date_year: 2019 full_text_status: none publication: Journal of Political Economy volume: vol.127 number: n°2 refereed: TRUE issn: 0022-3808 oai_identifier: oai:tse-fr.eu:32077 harvester_local_overwrite: issn harvester_local_overwrite: faculty harvester_local_overwrite: publisher harvester_local_overwrite: creators_idrefppn harvester_local_overwrite: number harvester_local_overwrite: volume harvester_local_overwrite: date harvester_local_overwrite: pending harvester_local_overwrite: ispublished harvester_local_overwrite: id_number oai_lastmod: 2018-02-01T14:32:56Z oai_set: tse site: ut1 citation: Lee, Tim and Seshadri, Ananth (2019) On the Intergenerational Transmission of Economic Status. Journal of Political Economy, vol.127 (n°2).