Abstract
This paper investigates two questions. First, what is the relative importance of the components of childhood family environment—parental values versus parental class status—for young adult economic outcomes? Second, are interracial differences in labor market outcomes fully explained by differences in family environment? We find that both family values and family class status affect intergenerational mobility and inter‐racial inequality. Consideration of racial differences in parental values and class status alters but does not eliminate the impact of race on the labor market outcomes of young adults.
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