The effect of parental wealth on children’s outcomes in early adulthood

Karagiannaki, Eleni (2017) The effect of parental wealth on children’s outcomes in early adulthood. Journal of Economic Inequality, 15 (3). pp. 217-243. ISSN 1569-1721

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Abstract

Using data from the British Household Panel Survey we show that parental wealth has a positive association with a range of outcomes in early adulthood. The outcome that exhibits the strongest association with parental wealth is higher educational attainment. This association is mainly concentrated at the lower half of the distribution and remains strong after controlling for a wide range confounding family characteristics. Parental wealth also has a positive relationship with children’s employment probability and earnings, although the gradient for both outcomes is rather weak and largely mediated by children’s education. A potential driver of the small size of the latter effects is the young age of the sample.

Item Type:	Article
Official URL:	http://link.springer.com/journal/10888
Additional Information:	© 2017 The Author, © CC BY 4.0
Divisions:	STICERD
Subjects:	H Social Sciences > HN Social history and conditions. Social problems. Social reform H Social Sciences > HQ The family. Marriage. Woman L Education > LB Theory and practice of education
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:	02 Dec 2016 16:34
Last Modified:	15 Apr 2024 06:21
URI:	http://eprints.lse.ac.uk/id/eprint/68507

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