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on Unemployment, Inequality and Poverty |
| By: | Holmberg, Johan (Department of Economics, Umeå University); Simmons, Michael (Department of Economics, Umeå University); Trapeznikova, Ija (Royal Holloway) |
| Abstract: | We use employer-employee data matched to detailed wealth records for the population of Sweden to study the relationship between initial wealth and labor market outcomes in early careers. Controlling for a detailed array of observable characteristics, including the educational major and parents' earnings before labor market entry, those with higher levels of wealth earn more. The relationship, however, is non-monotonic - the wealthiest and poorest earn less than those in the middle of the initial wealth distribution. We show that the correlation between initial wealth and average earnings in early careers is largely driven by between-firm differences, suggesting an important role for the allocation of workers across firms, and provide some descriptive evidence suggesting parental connections do not play a major role. We document several features of worker flows by parental wealth. We build a search model with on-the-job search, savings, disutility of work and heterogeneity in job destruction to understand these patterns. Providing greater benefits to workers upon labor market entry, taxed through labor income, can significantly increase wages and welfare. |
| Keywords: | earnings inequality; parental wealth; social mobility |
| JEL: | D31 E24 J62 J64 |
| Date: | 2024–10–28 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:umnees:1029 |
| By: | Breitkopf, Laura; Chowdhury, Shyamal; Priyam, Shambhavi; Schildberg-Hörisch, Hannah; Sutter, Matthias |
| Abstract: | We study the relationship between parenting style and a broad range of children's skills and outcomes. Based on survey and experimental data from 5, 580 children and their parents, we find that children exposed to positive parenting have higher IQs, are more altruistic, open to new experiences, conscientious, and agreeable, have a higher locus of control, self-control, and self-esteem, perform better in scholarly achievement tests, behave more prosocially in everyday life, and are more satisfied with their life. Positive parenting is negatively associated with children's neuroticism, patience, engagement in risky behaviors, and their emotional and behavioral problems. |
| Keywords: | parenting style, child outcomes, economic preferences, personality traits, IQ |
| JEL: | C91 D01 D10 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:dicedp:304410 |