We examine the impact of parental education on the shape of an individual’s experience-earnings
profile. A number of factors suggest that parental education will affect the ability of an individual to translate
labor market experience into earnings. Our empirical analysis of US data suggests that this is indeed the case.
Higher parental education shifts the earnings profile significantly to the left – the profile of individuals with
parents who both have 15 years of education peaks at 16 years of experience when their wages are 52% (24%)
greater than those whose parents both have only 5 (10) years of education.
|Bath Economics Research Working Papers
- human capital
- Parental education