The effect of parental wealth on children’s outcomes inearly adulthood

Karagiannaki, Eleni ORCID: 0000-0003-3648-9242 (2012) The effect of parental wealth on children’s outcomes inearly adulthood. CASEpapers (164). Centre for Analysis of Social Exclusion, London, UK.

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Abstract

This paper presents the first UK estimates of the association between parental wealth during adolescence and a range of children’s outcomes in early adulthood. Parental wealth is positively associated with all outcomes examined (which include educational attainment, employment, earnings and homeownership). The estimated associations are found to operate over and above parental education and income and in many cases are stronger than them. For labour market outcomes a small share of the association reflects the indirect effect of parental wealth on children’s education whereas for homeownership the estimated association appear to mainly reflect the effect of parental wealth transfers. Further analysis by wealth component shows that degree attainment is more strongly associated with housing wealth than financial wealth. However, important effects are also estimated for financial wealth indicating the existence of financial constraints for low wealth-financial indebted households. For homeownership and earnings the estimated association are stronger for financial wealth.

Item Type:	Monograph (Report)
Official URL:	http://sticerd.lse.ac.uk/case
Additional Information:	© 2012 The Author
Divisions:	Centre for Analysis of Social Exclusion
Subjects:	H Social Sciences > HG Finance H Social Sciences > HN Social history and conditions. Social problems. Social reform
JEL classification:	D - Microeconomics > D1 - Household Behavior and Family Economics D - Microeconomics > D3 - Distribution I - Health, Education, and Welfare > I2 - Education > I21 - Analysis of Education J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc. J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J62 - Job, Occupational, and Intergenerational Mobility
Date Deposited:	01 Aug 2013 11:46
Last Modified:	12 Dec 2024 05:58
URI:	http://eprints.lse.ac.uk/id/eprint/51292

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