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Presented By: Department of Economics

Labor Economics: What Accounts for the Racial Gap in Time Allocation and Intergenerational Transmission of Human Capital?

George-Levi Gayle, Washington University in St. Louis

Econ Umich Econ Umich
Econ Umich
Abstract:
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.

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April 7, 2021 (Wednesday) 2:30pm
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