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

98 Pages Posted: 27 Aug 2015 Last revised: 3 Jan 2019

See all articles by George-Levi Gayle

George-Levi Gayle

Federal Reserve Banks - Federal Reserve Bank of St. Louis; Washington University in St. Louis - Department of Economics

Limor Golan

Washington University in St. Louis, Department of Economics; Federal Reserve Banks - Federal Reserve Bank of St. Louis

Mehmet Soytas

King Fahd University of Petroleum and Minerals; Center for Economics and Econometrics; Global Labor Organization

Date Written: 2015-02-27

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.

Keywords: Life-cycle dynastic models, Household allocation of resource, Estimation of dynamic game of complete information, Human capital production function, Quantity-quality trade-off.

JEL Classification: C13, J13, J22, J62

Suggested Citation

Gayle, George-Levi and Gayle, George-Levi and Golan, Limor and Soytas, Mehmet, What Accounts for the Racial Gap in Time Allocation and Intergenerational Transmission of Human Capital? (2015-02-27). FRB St. Louis Working Paper No. 2015-18, Available at SSRN: https://ssrn.com/abstract=2652123

George-Levi Gayle (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of St. Louis ( email )

P.O. Box 442
St. Louis, MO 63166-0442
United States

Washington University in St. Louis - Department of Economics ( email )

One Brookings Drive
St. Louis, MO 63130
United States

HOME PAGE: http://https://artsci.wustl.edu/~ggayle/

Limor Golan

Washington University in St. Louis, Department of Economics ( email )

Campus Box 1120
Saint Louis, MO 63130
United States

Federal Reserve Banks - Federal Reserve Bank of St. Louis ( email )

P.O. Box 442
St. Louis, MO 63166-0442
United States

Mehmet Soytas

King Fahd University of Petroleum and Minerals ( email )

United States
0546243550 (Phone)
31262 (Fax)

HOME PAGE: http://https://sites.google.com/view/mehmetalisoytas/

Center for Economics and Econometrics ( email )

Bogazici Universitesi
Bebek
Istanbul, 34342
Turkey

HOME PAGE: http://https://cee.boun.edu.tr/content/mehmet-ali-soyta%C5%9F

Global Labor Organization ( email )

Collogne
Germany

HOME PAGE: http://https://glabor.org/user/mehmets/

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