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What Accounts for the Racial Gap in Time Allocation and Intergenerational Transmission of Human Capital?
This paper analyzes the sources of the racial difference in the intergenerational transmission of human capital by developing and estimating a dynastic model of parental time and monetary inputs in early childhood with endogenous fertility, home hours, labor supply, marriage, and divorce. It finds that the racial differences in the marriage matching patterns lead to racial differences in labor supply and home hours of couples. Although both the black-white labor market earnings and marriage market gaps are important sources of the black-white achievement gap, the assortative mating and divorce probabilities racial gaps accounts for a larger fraction of it.
Cite this item
George-Levi Gayle & Limor Golan & Mehmet A. Soytas, What Accounts for the Racial Gap in Time Allocation and Intergenerational Transmission of Human Capital?, Federal Reserve Bank of St. Louis, Working Papers 2015-18, 27 Feb 2015.
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
Keywords: Life-cycle dynastic models; Household allocation of resource; Estimation of dynamic game of complete information; Human capital production function; Quantity-quality trade-off.
This item with handle RePEc:fip:fedlwp:2015-018
is also listed on EconPapers
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