Childhood Parental Inputs and the Labor Market Success of Children

Abstract

We examine the effect of parental inputs on children's labor market outcome measured by the individual fixed effect in the wage equation and the education level obtained. We explicitly control for parental ability and child care time along with parental education, family disruption, childbearing, income, age at birth and race/ethnicity. We use the Panel Study of Income Dynamics, the American Time Use Survey and the American Heritage Time Use Survey. We find intergenerational immobility of education and ability in the labor market. Divorce adversely affects the educational attainment of children and child care time provided by parents does not enhance labor market outcomes of children. Boys are affected by parental age at birth.