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Title: An Intergenerational Model of Wages, Hours and Earnings
Resulting in 1 citation.
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Altonji, Joseph G. Dunn, Thomas Albert |
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An Intergenerational Model of Wages, Hours and Earnings NBER Working Paper No. 4950, National Bureau of Economic Research, December 1994. Also: http://nber.nber.org/papers/W4950.pdf Cohort(s): NLSY79 Publisher: National Bureau of Economic Research (NBER) Keyword(s): Benefits, Fringe; Demography; Earnings; Economics of Discrimination; Economics of Gender; Economics of Minorities; Gender Differences; Intergenerational Patterns/Transmission; Job Tenure; Job Training; Labor Economics; Labor Market Outcomes; Labor Supply; Modeling; Parental Influences; Schooling; Training, Occupational; Wage Differentials; Wage Levels; Wages; Work Hours/Schedule In this paper we develop and estimate a factor model of the earnings, labor supply, and wages of young men and women, their parents and their siblings. We estimate the model using data on matched sibling and parent-child pairs from the National Longitudinal Survey of Labor Market Experience. We measure the extent to which a set of unobserved parental and family factors that drive wage rates and work hours independently of wage rates lead to similarities among family members in labor market outcomes. We find strong family similarities in work hours that run along gender lines. These labor supply responses to family similarities in wages. The wage factors of the father and mother influence the wages of both sons and daughters. A "sibling" wage factor also plays an important role in wage determination. We find that intergenerational correlations in wages substantially overestimate the direct influence of fathers, and especially mothers, on wages. This is because the father's and mother's wage factors are positively correlated. The relative importance for the variance in earnings of the direct effect of wages, the labor supply response induced by wages, and effect of hours preferences varies by gender, and by age in the case of women. For all groups most of the effect of wages on earnings is direct rather than through a labor supply response. (COPYRIGHT: This record is part of the Abstracts of Working Papers in Economics (AWPE) Database, copyright (c) 1995 Cambridge University Press) Full-text available on-line: http://nberws.nber.org/papers/W4950.pdf |
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Bibliography Citation
Altonji, Joseph G. and Thomas Albert Dunn. "An Intergenerational Model of Wages, Hours and Earnings." NBER Working Paper No. 4950, National Bureau of Economic Research, December 1994. |