The Role of Children's Health in the Intergenerational Transmission of Economic Status.

Abstract

AbstractIntergenerational mobility is relatively low in the United States. Children who grow up in poverty are eight times more likely to live in poverty in adulthood than their counterparts who do not live in poverty. What is it about growing up in poverty that reduces the probability of economic success later in life? On average, children whose families live in poverty have lower levels of cognitive skills, noncognitive skills (e.g., behavior including perseverance and adaptability), and health, all of which contribute to earnings in adulthood. In this article, I examine the role children's health plays in intergenerational transmission of economic status from an economic perspective and in the context of a developed, high‐income country (the United States). Evidence suggests that the mechanisms by which parents’ income affects children's health include, but are not limited to, reduced access to health insurance and medical care, greater exposure to environmental toxins, inadequate nutrition, and greater family violence and stress. I conclude with evidence suggesting that public investments in children's health can reduce the intergenerational transmission of economic status and the inequality of the next generation in the United States, as well as in other less developed nations.