The lasting effect of intergenerational wealth transfers: Human capital,family formation,and wealth

Recent evidence indicates that inheritances and other intergenerational wealth transfers have only a limited effect on wealth inequality and the intergenerational transmission of financial well-being. In this study, we explore the role that human capital and family formation play in mediating the relationship between receiving a transfer and building wealth. We examine how educational attainment and family formation determine whether or not households are able to convert inheritances into greater assets, facilitating improved wealth accumulation. Using data from the Panel Study for Income Dynamics (PSID), we examine how these factors moderate wealth accumulation trajectories following a bequest or inter vivos gift. Results reveal that educational attainment and marriage each facilitate wealth accumulation following a transfer. Our evidence suggests that cumulative advantage processes produce divergent wealth accumulation trajectories but these are situated in important turning points in the life course.     

Extended-family resources and racial inequality in the transition to homeownership

We use longitudinal data from the Panel Study of Income Dynamics to examine how access to financial resources in the extended family affects the accumulation of wealth among non-owners and how these resources subsequently affect transitioning into homeownership. Our findings show that economic conditions of the extended family have substantial effects on non-owners’ wealth accumulation and likelihood of becoming homeowners, even after adjusting for individual sociodemographic and economic characteristics. We find significant effects of extended-family wealth for both black and white households, but effects of extended-family income insufficiency for blacks only. Consequently, limited access to wealth and greater level of poverty in the extended family hamper blacks’ transition to homeownership. Our results show that the level of extended-family wealth necessary for black householders to equalize their likelihood of becoming homeowners with whites is very high. In fact, our findings indicate that white householders embedded in extended families with no net wealth are just as likely to make the transition to ownership as are black householders with affluent extended families. These findings support arguments related to the importance of extended-family resources in processes of residential attainment but also point to important racial differences in not only levels but also consequences of these family resources.     

Immigrant and native financial well-being: The roles of place of education and race/ethnicity

Immigrants’ integration into U.S. society has occupied the interest of both scholars and the general public throughout the nation’s history. This paper draws on and refines dominance-differentiation theory to explore how immigrants’ place of education (whether they completed their education in the United States or abroad) and racial/ethnic status differentially affect their ability to integrate into U.S. society. Using the Survey of Income and Program Participation and wealth attainment as an indicator of economic integration, this paper finds mixed evidence for dominance-differentiation theory. Foreign education is associated with lower wealth attainment and race/ethnicity serves as an important stratifying factor for blacks and Latinos; however, there is little support for the theory when comparing the wealth attainment of immigrants with their same-race/co-ethnic native-born peers. This paper concludes with a discussion of why place of education matters for wealth attainment in the United States and explores its implications for both educational and racial/ethnic stratification among U.S. immigrants.     

Non-intact families and diverging educational destinies: A decomposition analysis for Germany,Italy, the United Kingdom and the United States

We examine whether the presence of non-intact families in society is related to increased inequality in educational attainment according to social background, as suggested by the ‘diverging destinies’ thesis. We analyze four countries, Germany, Italy, the United Kingdom, and the United States, that differ in the prevalence of non-intact families and in the strength of the negative association between growing up in a non-intact family and children's educational attainment. We use a Blinder-Oaxaca decomposition approach to calculate a ‘counterfactual’ estimate of differences in educational attainment between socioeconomically advantaged and disadvantaged children in the hypothetical absence of non-intact families. Contrary to the diverging destinies thesis, we find little differences between actual and ‘counterfactual’ levels of inequality in educational attainment in all four countries. Whereas growing-up in a non-intact family affects the individual chances of educational attainment, the overall contribution of non-intact families to aggregate levels of social background inequality appears minimal.     

我国居民家庭金融资产财富效应分析

利用中国人民银行1992年开始发布的住户部门流量金融资产年度数据,运用协整理论和ECM模型分析我国居民家庭持有的各类金融资产的财富效应,结果表明:可支配收入是影响我国居民消费的主要因素;居民手持现金、存款和股票的财富效应不显著;债券、保险资产存在负的财富效应,对居民消费有挤出效应。因此,在促使居民收入稳步增长的同时,必须进一步发展和完善我国金融市场,扩大市场规模,提高市场效率,稳定投资者预期,并尽快完善住房、医疗、教育、养老保险等体制,才能充分发挥金融资产对居民消费的引导和调控作用。     

Public housing into private assets: Wealth creation in urban China

State socialist economies provided public housing to urban citizens at nominal cost, while allocating larger and better quality apartments to individuals in elite occupations. In transitions to a market economy, ownership is typically transferred to existing occupants at deeply discounted prices, making home equity the largest component of household wealth. Housing privatization is therefore a potentially important avenue for the conversion of bureaucratic privilege into private wealth. We estimate the resulting inequalities with data from successive waves of a Chinese national income survey that details household assets and participation in housing programs. Access to privatization programs was relatively equal across urban residents in state sector occupations. Elite occupations had substantially greater wealth in the form of home equity shortly after privatization, due primarily to their prior allocations of newer and higher quality apartments. The resulting gaps in private wealth were nonetheless small by the standards of established market economies, and despite the inherent biases in the process, housing privatization distributed home equity widely across those who were resident in public housing immediately prior to privatization.     

Self-esteem and self-efficacy in the status attainment process and the multigenerational transmission of advantage

Despite considerable evidence of the importance of self-esteem and self-efficacy for agentic, goal-oriented behavior, little attention has been directed to these psychological dimensions in the status attainment literature. The present research uses data from the longitudinal, three-generation Youth Development Study (N = 422 three-generation triads) to examine the extent to which adolescent self-esteem and economic self-efficacy affect adult educational and income attainment, and whether these psychological resources are transmitted from one generation to the next, accumulating advantage across generations. We present evidence indicating that both self-esteem and economic self-efficacy are implicated in the attainment process. Adolescent economic self-efficacy had a direct positive effect on adult educational attainment and an indirect effect through educational plans. The influence of self-esteem on adult educational attainment was entirely indirect, through school achievement. We also find evidence that economic self-efficacy was transmitted from parents to children. We conclude that future research should more broadly consider psychological resources in attainment processes from a longitudinal multigenerational perspective.     

财富生产与我国社会主义的发展进步

社会主义的独特的质的规定性决定了我国社会主义的历史任务就是不断发展生产力并增长物质财富.然而,社会主义市场经济在作为能够最有效地发展生产力和创造物质财富的社会生产体制的同时,也作为社会分化体制而加大了两极分化、贫富不均等影响经济社会发展的问题.解决这些问题需要我们在把握社会主义财富生产的功能性要求与合法性要求的同时,确立起与从"如何增加财富"到"如何支配财富"的历史转变相适应的社会财富生产观.     

Assessing the benefits of a rising tide: Educational attainment and increases in neighborhood socioeconomic advantage

An emerging approach to studying associations between neighborhood contexts and educational outcomes is to estimate the outcomes of adolescents growing up in neighborhoods that are experiencing economic growth in comparison to peers that reside in economically stable or declining communities. Using data from the National Longitudinal Study of Adolescent Health (Add Health), I examine the association between education attainment and changes in socioeconomic advantage in urban neighborhoods between 1990 and 2000. I find that residing in a neighborhood that experiences economic improvements has a positive association with educational attainment for urban adolescents. Furthermore, race-based analyses suggest consistently positive associations for all race subgroups, lending support to protective models of neighborhood effects that argue high neighborhood SES supports positive outcomes for adolescents residing in these contexts.     

Student misbehavior during senior year: A comparison of immigrants and the native-born

Prior research has increasingly shown that the length of time in the U.S. and acculturation may have negative effects on a variety of immigrant outcomes, including academic performance, health, and occupational attainment. However, much of the research on the educational outcomes of immigrants focuses primarily on their academic achievement but neglects another factor that affects educational success—behavior at school. Using data from a sample of high school seniors in several Pacific Northwest school districts, I examine whether more time in the U.S. increases school misbehavior by testing the effects of immigrant generation and indicators of acculturation on three measures of disciplinary problems during the senior year of high school—attending class unprepared, getting in trouble for breaking school rules, and being put on suspension. First and one-point-five generation immigrants attend class more prepared and get into less trouble for breaking the school rules than do third or higher generation students during their senior year of high school. High academic performance and indicators of acculturation explain only part of this beneficial effect of immigrant generation on behavior at school. Additional analyses show that second generation Asian immigrants are more similar to first and 1.5 generation immigrants from all racial and ethnic groups than they are from other second generation racial and ethnic groups in regards to moderate and intermediate behavior.     

Whither the virtuous cycle? Past and future trends in black-white inequality in educational attainment

The inequality in the relative years of education between blacks and whites has diminished dramatically over the 20th century. One possible explanation for this convergence is a virtuous cycle of parents passing on educational advantage, from one generation to the next, leading to an overall educational upgrading. In this paper we test the virtuous cycle hypothesis by estimating the three way interaction of cohort, race, and family background. We find that the convergence in educational attainment between blacks and whites over the past century was driven by processes unrelated to family background.     

“学区房”溢价持续扩大的原因与对策研究--来自北京市的经验分析

在当前义务教育资源供给趋向公平、地区及学校间教育差距有所缩小的背景下，我国“学区房”溢价却呈愈演愈烈之势，引起了社会的广泛关注。以北京市义务教育资源分布最具代表性的区县为例，在考察“学区房”溢价水平变化趋势的基础上，将义务教育资源竞争程度、家庭财富不平等程度和经济增长等作为内生变量，构建联立方程进行经验检验，结果表明：家庭财富不平等程度和义务教育资源竞争程度对“学区房”溢价水平变化的回归系数显著为正，且前者的相关性要显著高于后者，家庭财富不平等的加剧是近年来我国“学区房”溢价水平扩大的主要原因。因此，治理“学区房”问题不仅要均衡区域间义务教育资源的供给，更要有效遏制家庭财富不平等的加剧。     

Wealth Accumulation across the Adult Life Course: Stability and Change in Sociodemographic Covariate Structures of Net Worth Data in the Survey of Income and Program Participation, 1984–1991

This paper reports microlevel Tobit regression analyses of sociodemographic covariates of the life course accumulation of total household net worth data in eight waves of five distinct panels—spanning over 6 years from late 1984 through early 1991—of the Survey of Income and Program Participation (SIPP). It is found that the quadratic age–wealth relationship predicted by Modigliani's Life Cycle Hypothesis is evident in aggregate age–median wealth profiles as well as in the micro data for households with positive net worth. However, when adult status attainment variables are entered into the regression models either by themselves or in combination with marital/family status variables, the age of household head at which net worth begins to decline is far beyond the typical retirement age. In addition, the traditional criterion variables of sociological status attainment theory—educational attainment, occupational status, and earnings—are found to be positively associated with household net worth, although the net effect of occupational status generally is not statistically significant and the earnings effect is nonlinear. Further, consistent with status attainment theory, householder minority status (black, Hispanic) is negatively associated with the accumulation of net worth. It is found that both single male and single female householder status are negatively associated with the accumulation of household net worth (relative to married couple households) as is the size of the household (measured by the number of children under age 18 present). Separate logistic regression analyses show that households with zero and negative net worth are more likely than households with positive net worth to be black and have low earnings. Higher levels of educational and occupational status attainment reduce the probability of zero net worth but not the probability of negative net worth. Male- and female-headed households and households headed by Hispanics also are more likely to have zero net worth, but not negative net worth. The estimated sociodemographic covariate structures of household net worth are found to exhibit substantial stability across both waves and panels in the SIPP—although effects of the 1990–1991 recession are detectable in estimates for the 1990 panel. Possible applications of the estimated models in demographic projections of household net worth are suggested.     

The Academic Success of East-Asian–American Students-An Investment Model

Previous empirical studies have long noted the existence of an “Asian effect” on students' math and science performance. Yet, few studies have developed a conceptual model that explains why Asian-American students outperform students from other race-ethnic backgrounds. In this study, I incorporate the concepts of financial, human, cultural, and social capital into an investment model to study racial differences in educational performance. Analyses of a nationally representative sample of 8th grade students have indicated that families from East-Asian origins invest more aggressively in financial, human, and within-family social capital than families from other racial groups, even after social and demographic controls are taken into consideration. These differences in investment explain a large portion of the Asian effect. In addition, half of the investment measures examined yield a greater educational return for East-Asian students than for students of other racial groups. Overall, the analyses have demonstrated that the investment model is an attractive approach to study the Asian effect.     

Are there neighborhood effects on young adult neighborhood attainment? Evidence from mixed-logit models

Studies of racial residential attainment show an intergenerational transmission of racial contexts from youth to adulthood, but it is unclear why this transmission is so robust. It is possible that experiences in racial contexts during youth have lasting effects on neighborhood selection in adulthood, but evidence for this claim has come from research using statistical methods that suffer from problems of ecological dependence and conflation of other neighborhood characteristics. In this study, we address these limitations using mixed-logit models, a form of discrete choice analyses, allowing us to control for differences across metropolitan areas and for multiple characteristics of neighborhoods that may affect the selection of destination neighborhoods. Data for the analyses come from the National Educational Longitudinal Study, the 1990 and 2000 Censuses, and other sources. We find that most of the intergenerational process results from young adults moving to neighborhoods short distances from their origin ones, but the models also suggest a contextual effect of youth experiences in racial compositions on neighborhood selection. The latter finding indicates that policies promoting integration among youth can have long-lasting effects on residential attainment.     

Family structure and the intergenerational transmission of educational advantage

I examine whether the effect of parents’ education on children’s educational achievement and attainment varies by family structure and, if so, whether this can be explained by differential parenting practices. Using data from the National Education Longitudinal Study of 1988, I find that as parents’ education increases, children in single mother families experience a lower boost in their achievement test scores, likelihood of attending any post-secondary schooling, likelihood of completing a 4-year college degree, and years of completed schooling relative to children living with both biological parents. Differences in parents’ educational expectations, intergenerational closure, and children’s involvement in structured leisure activities partially explain these status transmission differences by family structure. The findings imply that, among children with highly educated parents, children of single mothers are less likely to be highly educated themselves relative to children who grow up with both biological parents.     

Skin color,sex, and educational attainment in the post-civil rights era

We assess the relationship between skin color and educational attainment for native-born non-Hispanic Black and White men and women, using data from the Coronary Artery Risk Development in Young Adults (CARDIA) Study. CARDIA is a medical cohort study with twenty years of social background data and a continuous measure of skin color, recorded as the percent of light reflected off skin. For Black men and women, we find a one-standard-deviation increase in skin lightness to be associated with a quarter-year increase in educational attainment. For White women, we find an association approximately equal in magnitude to that found for Black respondents, and the pattern of significance across educational transitions suggests that skin color for White women is not simply a proxy for family background. For White men, any relationship between skin color and attainment is not robust and, analyses suggest, might primarily reflect differences in family background. Findings suggest that discrimination on the basis of skin color may be less specific to race than previously thought.     

Inequality of educational opportunity in France and the United States

Unequality of educational opportunity is related to school structure. Comparison of the attainment process in France and the United States reveals the consequences of structure for individuals' attainments. Turner's (1960) typology of educational systems is applied. The French educational system is shown to be closer to Turner's “sponsorship system,” and that of the U. S. closer to the “contest” type. Inequality of educational opportunity, as indicated by the effect of father's occupational status on years of schooling completed, is greater in France than in the U. S. The difference is accounted for by school structural variables, indicating the importance of structure for inequality of opportunity. Other differences concerning the causes of educational attainment in France and the U. S. are also discussed.     

Trends in the relative occupational status of African Americans and European immigrants in Northern cities, 1880–1970

In his classic book, A Piece of the Pie, Stanley Lieberson described divergent trends in occupational standing for African Americans and European immigrants after 1920, as the Great Migration from the South swelled the size of the black population in northern cities. In this paper I build upon Lieberson’s work using longitudinal data drawn from the Integrated Public Use Microdata Series for the census years 1880–1970. This more versatile data source allows me to examine separate occupational trends for northern-born blacks and southern-born migrants and to control for relevant socio-demographic characteristics. The findings confirm Lieberson’s general conclusion that blacks lost ground, occupationally, to immigrants after 1920. However, they show further that: (1) northern- and southern-born blacks experienced different trends in relative occupational standing after 1920, (2) that these different trends were due largely to compositional differences between the two groups of northern blacks, especially educational differences, and (3) that blacks were generally less successful than immigrants at translating additional educational attainment into improved occupational status, with southern migrants experiencing the weakest occupational returns to education. It is concluded that compositional differences and a racially-defined occupational queue were the most important factors shaping group differences and trends in occupational standing between 1920 and 1970. Timing of arrival in the northern industrial economy and a response by whites to the “racial threat” from a growing black population were less important.     

Ties on the fringes of identity

I use data on part-American Indian children in the 1990 Census 5% PUMS to assess my hypotheses that thick racial ties within the family constrain racial identification, and that structural aspects of the community (group size, inequality, and racial heterogeneity) affect racial identification when racial ties are thin within the family. American Indians present an interesting case study because their high levels of intermarriage and complex patterns of assimilation/identity retention for generations provide a varied group of people who could potentially identify their race as American Indian. Several hypotheses are supported by the data, signifying that racial identification among people with mixed-heritage is affected by the social world beyond individual psychology and racial ties within the family.