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Intergenerational Mobility and the Timing of Parental Income

Carneiro, Pedro; Garcia, Italo Lopez; Salvanes, Kjell G.; Tominey, Emma
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URI
http://hdl.handle.net/11250/2356791
Date
2015-10
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  • Discussion papers (SAM) [675]
Abstract
We extend the standard intergenerational mobility literature by modelling individual outcomes

as a function of the whole history of parental income, using data from Norway. We find that,

conditional on permanent income, education is maximized when income is balanced between the

early childhood and middle childhood years. In addition, there is an advantage to having income

occur in late adolescence rather than in early childhood. These result are consistent with a model

of parental investments in children with multiple periods of childhood, income shocks, imperfect

insurance, dynamic complementarity, and uncertainty about the production function and the ability

of the child.
Publisher
SAM
Series
Discussion paper;23/15

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