Answers are grounded in this paper and cite their sources.
Examines how employment correlation across generations influences earnings persistence, suggesting strong implications for economic mobility.
We study how the correlation of employment across generations affects the intergenerational persistence of earnings in a simple model of labor market transitions and human capital accumulation. Using data from the United Kingdom, we first document that individuals whose father is employed have an 8 percentage points higher probability of being employed, driven by a 50 percent higher job‐finding probability. We do not find similar patterns for job‐separation probabilities. Calibrating our model to match these patterns, we find that the estimated job‐finding probability differentials can account for up to 9 percent of the intergenerational persistence of earnings.
No takes yet. Share an insight, caveat, or question.
Bello et al. (2026) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: