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Title: Explaining Intergenerational Mobility: The Role of Fertility and Family Transfers

Citation Type: Miscellaneous

Publication Year: 2019

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Abstract: Poor families have more children and transfer less resources to them. This suggests that family decisions about fertility and transfers dampen intergenerational mobility. To evalu- ate the quantitative importance of this mechanism, we extend the standard heterogeneous- agent life cycle model with earnings risk and credit constraints to allow for endogenous fertility, family transfers, and education. The model, estimated to the US in the 2000s, implies that a counterfactual flat income-fertility profile would—through the equaliza- tion of initial conditions—increase intergenerational mobility by 6%. The impact of a counterfactual constant transfer per child is twice as large.

Url: http://www.juliankozlowski.com/papers/DK.pdf

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Authors: Daruich, Diego; Kozlowski, Julian

Publisher: Federal Reserve Bank of St. Louis

Data Collections: IPUMS CPS

Topics: Family and Marriage, Fertility and Mortality, Other

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