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Author: Dunn, Thomas Albert
Resulting in 14 citations.
1. Altonji, Joseph G.
Dunn, Thomas Albert
An Intergenerational Model of Earnings, Hours and Wages
Working Paper, Center for Urban Affairs and Policy Research, Northwestern University, 1990
Cohort(s): Mature Women, Older Men, Young Men, Young Women
Publisher: Center for Urban Affairs and Policy Research, Northwestern University, now Institute for Policy Research
Keyword(s): Earnings; Family Influences; Fathers; Intergenerational Patterns/Transmission; Labor Market Outcomes; Mothers; Pairs (also see Siblings); Parental Influences; Sons; Wages

Permission to reprint the abstract has not been received from the publisher.

In this paper, the authors measure the extent to which the parental and family characteristics that drive wage rates and work hours independently of wage rates are responsible for similarities among family members in labor market outcomes. A factor model is developed for the earnings, hours and wages of young men and young women which then dictates the linkages among the covariances of these variables and those of their parents and their siblings. In the model, a young man's or woman's wage depends on the permanent component of father's wage, the permanent component of mother's wage, a sibling component which captures background characteristics that are common to siblings and are independent of the parents, and an idiosyncratic component. The young man's annual hours depend on his wages and his preferences which are composed of four independent elements--his father's preference factor, his mother's preference factor, and sibling and idiosyncratic factors. Lastly, his earnings are determined by his wages and his hours choice. The authors fit the model using auto- and covariances of earnings, hours and wages estimated from data on matched sibling and parent-child pairs from the NLS. The results indicate that the wages of young men and young women are quite responsive to the wage components of their fathers and mothers, and that there are important family links among the labor supply preferences as well. It was also found that wages play a small role in labor supply determination for young men, young women, and older men, and a larger role for mature women. Detailed decompositions of the variance of earnings, hours, and wages are provided.
Bibliography Citation
Altonji, Joseph G. and Thomas Albert Dunn. "An Intergenerational Model of Earnings, Hours and Wages." Working Paper, Center for Urban Affairs and Policy Research, Northwestern University, 1990.
2. Altonji, Joseph G.
Dunn, Thomas Albert
An Intergenerational Model of Wages, Hours and Earnings
NBER Working Paper No. 4950, National Bureau of Economic Research, December 1994.
Also: http://nber.nber.org/papers/W4950.pdf
Cohort(s): NLSY79
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Benefits, Fringe; Demography; Earnings; Economics of Discrimination; Economics of Gender; Economics of Minorities; Gender Differences; Intergenerational Patterns/Transmission; Job Tenure; Job Training; Labor Economics; Labor Market Outcomes; Labor Supply; Modeling; Parental Influences; Schooling; Training, Occupational; Wage Differentials; Wage Levels; Wages; Work Hours

In this paper we develop and estimate a factor model of the earnings, labor supply, and wages of young men and women, their parents and their siblings. We estimate the model using data on matched sibling and parent-child pairs from the National Longitudinal Survey of Labor Market Experience. We measure the extent to which a set of unobserved parental and family factors that drive wage rates and work hours independently of wage rates lead to similarities among family members in labor market outcomes. We find strong family similarities in work hours that run along gender lines. These labor supply responses to family similarities in wages. The wage factors of the father and mother influence the wages of both sons and daughters. A "sibling" wage factor also plays an important role in wage determination. We find that intergenerational correlations in wages substantially overestimate the direct influence of fathers, and especially mothers, on wages. This is because the father's and mother's wage factors are positively correlated. The relative importance for the variance in earnings of the direct effect of wages, the labor supply response induced by wages, and effect of hours preferences varies by gender, and by age in the case of women. For all groups most of the effect of wages on earnings is direct rather than through a labor supply response. (COPYRIGHT: This record is part of the Abstracts of Working Papers in Economics (AWPE) Database, copyright (c) 1995 Cambridge University Press) Full-text available on-line: http://nberws.nber.org/papers/W4950.pdf
Bibliography Citation
Altonji, Joseph G. and Thomas Albert Dunn. "An Intergenerational Model of Wages, Hours and Earnings." NBER Working Paper No. 4950, National Bureau of Economic Research, December 1994.
3. Altonji, Joseph G.
Dunn, Thomas Albert
An Intergenerational Model of Wages, Hours, and Earnings
Journal of Human Resources 35,2 (Spring 2000): 221-258.
Also: http://www.jstor.org/stable/146324
Cohort(s): Mature Women, Older Men, Young Men, Young Women
Publisher: University of Wisconsin Press
Keyword(s): Earnings; Gender; Intergenerational Patterns/Transmission; Parental Influences; Siblings; Sons; Wage Effects; Wages

We develop a model in which a set of unobserved parental and sibling factors drives wages and work preferences. These factors lead to similarities within families in wages, work hours, and earnings. We estimate the model using data on parents and siblings in the National Longitudinal Surveys. We find that parental and sibling wage factors influence the wages of both sons and daughters. We also find strong similarities in work hours that run along gender lines and are due primarily to linkages in preferences. The effect of wages on earnings is direct rather than through a labor supply response.
Bibliography Citation
Altonji, Joseph G. and Thomas Albert Dunn. "An Intergenerational Model of Wages, Hours, and Earnings." Journal of Human Resources 35,2 (Spring 2000): 221-258.
4. Altonji, Joseph G.
Dunn, Thomas Albert
Effects of Parental Characteristics on the Returns to Education and Labor Market Experience
Working Paper, Center for Urban Affairs and Policy Research, Northwestern University, 1990
Cohort(s): Young Men, Young Women
Publisher: Center for Urban Affairs and Policy Research, Northwestern University, now Institute for Policy Research
Keyword(s): Educational Attainment; Educational Returns; Family Background; I.Q.; Modeling, Fixed Effects; Pairs (also see Siblings); Parental Influences; School Characteristics/Rating/Safety; Sons; Wages; Work Experience

Permission to reprint the abstract has not been received from the publisher.

Many studies have found strong influences of parental characteristics and family on the educational attainment of children. Few, however, have looked at the influence of these factors on the rate of return to education or rate of return to experience. The authors measure the extent to which the education profile of wages and the experience profile of wages are influenced by the child's IQ, parents' educations, and the index of family background variables, school characteristics, and personal characteristics that predict years of schooling completed. The presence of sibling pairs in the NLS is exploited in estimating the effects of parental characteristics and background variables on the education slope of wages and the experience slope of wages. The authors use ordinary least squares regression procedures and include a family fixed effect to capture omitted family variables that might otherwise bias the slope estimates. It was found that the child's IQ, parents' educations, and the index of personal, family and school characteristics that predict the child's educational attainment have only a weak influence on the relationships between education and wages and labor market experience and wages. It seems unlikely that the effect of family background on the education slope of wages is responsible for more than a small fraction of the powerful effect of family background on the years of schooling completed.
Bibliography Citation
Altonji, Joseph G. and Thomas Albert Dunn. "Effects of Parental Characteristics on the Returns to Education and Labor Market Experience." Working Paper, Center for Urban Affairs and Policy Research, Northwestern University, 1990.
5. Altonji, Joseph G.
Dunn, Thomas Albert
Family Background and Labor Market Outcomes
NLS Discussion Paper No. 92-13, U.S. Bureau of Labor Statistics, Washington DC, June 1990.
Also: http://stats.bls.gov/ore/abstract/nl/nl900030.htm
Cohort(s): Mature Women, Older Men, Young Men, Young Women
Publisher: U.S. Department of Labor
Keyword(s): Children; Educational Returns; Family Influences; Gender Differences; Labor Market Outcomes; Pairs (also see Siblings); Parental Influences; Racial Differences; Siblings

Also: Final Report, U.S. Department of Labor, Bureau of Labor Statistics, 1990.

This report is a compilation of the following three papers abstracted elsewhere in this bibliography: (1) "Relationships Among the Family Incomes and Labor Market Outcomes of Relatives"; (2) "An Intergenerational Model of Wages, Hours and Earnings"; and (3) "Effects of Parental Characteristics on the Returns to Education and Labor Market Experience."

Bibliography Citation
Altonji, Joseph G. and Thomas Albert Dunn. "Family Background and Labor Market Outcomes." NLS Discussion Paper No. 92-13, U.S. Bureau of Labor Statistics, Washington DC, June 1990.
6. Altonji, Joseph G.
Dunn, Thomas Albert
Relationships Among the Family Incomes and Labor Market Outcomes of Relatives
Research in Labor Economics 12 (1991): 269-310.
Also: http://www.econ.yale.edu/~jga22/website/research_papers/altonji_dunn.pdf
Cohort(s): Mature Women, Older Men, Young Men, Young Women
Publisher: JAI Press, Inc.
Keyword(s): Collective Bargaining; Earnings; Family Income; Fathers; Income; Intergenerational Patterns/Transmission; Job Productivity; Labor Market Outcomes; Mothers; Pairs (also see Siblings); Sons

This paper examines the links between the labor market outcomes of individuals who are related by blood or by marriage using panel data on pairs of matched family members from the NLS. The authors examine the intergenerational and sibling correlations among a broad set of labor market variables using time average, method of moments, and regression techniques designed to reduce the biases introduced by transitory and measurement errors. They also show that family data can be exploited to investigate theories of job turnover, labor supply, and the industry structure of wages. The primary findings follow. First, there are strong correlations between the family incomes of relatives. The method of moments estimates are .38 for brother pairs, .73 for sister pairs, and .56 for brother-sister pairs. The intergenerational family income correlations are .36 for father-son pairs, .48 for father-daughter pair, and .56 for mother-daughter and mother-son pairs. These estimates, except for the father-son result, are large compared to those in the literature for the U.S. Second, strong correlations were found in the wages and earnings of relatives. Wage correlations vary around .40 for all family member pairs, and earnings correlations vary around .35. Work hours of family members of the same sex are also fairly strongly related. Fourth, strong correlations were found in the earnings of "in-laws" that may support a theory of assortive mating in which parental earnings have value. Also provided was evidence that job turnover rates depend on family characteristics and are negatively correlated with labor market productivity. Further, it was shown that young men whose fathers work in high wage industries tend themselves to work in high wage industries and that a father's collective bargaining coverage has a strong positive influence on his son's collective bargaining status.
Bibliography Citation
Altonji, Joseph G. and Thomas Albert Dunn. "Relationships Among the Family Incomes and Labor Market Outcomes of Relatives." Research in Labor Economics 12 (1991): 269-310.
7. Altonji, Joseph G.
Dunn, Thomas Albert
Relationships Among the Family Incomes and Labor Market Outcomes of Relatives
NBER Working Paper No. w3724, National Bureau of Economic Research, June 1991.
Also: http://www.nber.org/papers/w3724
Cohort(s): NLSY79
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Collective Bargaining; Family Income; Fathers and Sons; Intergenerational Patterns/Transmission; Labor Market Outcomes; Labor Productivity; Mothers and Daughters; Siblings

This paper examines the links between the labor market outcomes of individuals who are related by blood or by marriage using panel data on pairs of matched family members from the National Longitudinal Survey of Labor Market Experience. We examine the intergenerational and sibling correlations among a broad set of labor market variables using time average, method of moments and regression techniques designed to reduce the biases introduced by transitory and measurement errors. We also show that family data can be exploited to investigate theories of job turnover, labor supply. and the industry structure of wages. Our primary findings follow. First, there are strong correlations between the family incomes of relatives. Our method of moments estimates are .38 for brother pairs, .73 for sister pairs. and .56 for brother-sister pairs. The intergenerational family income correlations are .36 for father-son pairs, .48 for father-daughter pairs, and .56 for both mother-son and mother-daughter pairs. These estimates, except for the father-son result, are large compared to those in the literature for the U.S. Second, we find strong correlations in the wages and earnings of relatives. Wage correlations vary around .40 for all family member pairs, and earnings correlations vary around .35. Work hours of family members of the same sex are also fairly strongly related. Fourth, we find strong correlations in the earnings of "in-laws" that may support a theory of assortive mating in which parental earnings have value. We also provide evidence that job turnover rates depend on family characteristics and are negatively correlated with labor market productivity. Further, we show that young men whose fathers work in high wage industries tend themselves to work in high wage industries. Lastly, we find that a father's collective bargaining coverage has a strong positive influence on his son's collective bargaining status.
Bibliography Citation
Altonji, Joseph G. and Thomas Albert Dunn. "Relationships Among the Family Incomes and Labor Market Outcomes of Relatives." NBER Working Paper No. w3724, National Bureau of Economic Research, June 1991.
8. Altonji, Joseph G.
Dunn, Thomas Albert
The Effects of Family Characteristics on the Return to Education
Review of Economics and Statistics 78,4 (November 1996): 692-704.
Also: http://www.jstor.org/stable/2109956
Cohort(s): Young Men, Young Women
Publisher: Harvard University Press
Keyword(s): Education; Educational Returns; Family Background; Family Characteristics; Labor Market Outcomes; Pairs (also see Siblings); Panel Study of Income Dynamics (PSID); Schooling; Siblings; Wage Effects; Wage Equations

Permission to reprint the abstract has not been received from the publisher.

The role of parental education in the human capital production function is examined by estimating the effects of parental education on the education profile of wages. The analysis uses sibling pairs from the Panel Study of Income Dynamics and the National Longitudinal Surveys of Labor Market Experience of Young Men and Young Women. Mixed evidence on whether parental education raises the return to education is obtained. (ABI/Inform)
Bibliography Citation
Altonji, Joseph G. and Thomas Albert Dunn. "The Effects of Family Characteristics on the Return to Education." Review of Economics and Statistics 78,4 (November 1996): 692-704.
9. Altonji, Joseph G.
Dunn, Thomas Albert
The Effects of School and Family Characteristics on the Return to Education
NBER Working Paper No. 5072, National Bureau of Economic Research, March 1995.
Also: http://nber.nber.org/papers/W5072.pdf
Cohort(s): Young Men, Young Women
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Educational Returns; Family Background; Family Characteristics; High School Completion/Graduates; Mothers, Education; Pairs (also see Siblings); Panel Study of Income Dynamics (PSID); School Characteristics/Rating/Safety; School Quality; Siblings; Wage Models

We measure the effects of parental education on the education profile of wages. The analysis uses sibling pairs from the Panel Study of Income Dynamics and the National Longitudinal Surveys of Labor Market Experience of Young Men and Young Women. We also use the variance across siblings in school characteristics to estimate the effects of school inputs on wages holding family background constant. We obtained mixed evidence on whether parental education raises the return to education. We find that teacher's salary, expenditures per pupil, and a composite index of school quality measures have a substantial positive effect on the wages of high school graduates. Full-text available on-line: http://nber.nber.org/papers/W5072.pdf
Bibliography Citation
Altonji, Joseph G. and Thomas Albert Dunn. "The Effects of School and Family Characteristics on the Return to Education." NBER Working Paper No. 5072, National Bureau of Economic Research, March 1995.
10. Altonji, Joseph G.
Dunn, Thomas Albert
Using Siblings to Estimate The Effect of School Quality on Wages
Review of Economics and Statistics 78,4 (November 1996): 665-671.
Also: http://www.jstor.org/stable/2109953
Cohort(s): Young Men, Young Women
Publisher: Harvard University Press
Keyword(s): Education; Educational Returns; Family Background; Family Characteristics; High School Students; Labor Market Outcomes; Pairs (also see Siblings); Panel Study of Income Dynamics (PSID); School Characteristics/Rating/Safety; School Quality; Schooling; Siblings; Wage Effects; Wage Equations; Wage Models

Permission to reprint the abstract has not been received from the publisher.

The variance across siblings in school characteristics is used to estimate the effects of school inputs on wages. The analysis uses sibling pairs from the National Longitudinal Surveys of Labor Market Experience of Young Men and Young Women. It is found that teachers' salary, expenditures per pupil, and a composite index of school quality indicators have a substantial positive effect on the wages of high school graduates. (ABI/Inform)
Bibliography Citation
Altonji, Joseph G. and Thomas Albert Dunn. "Using Siblings to Estimate The Effect of School Quality on Wages." Review of Economics and Statistics 78,4 (November 1996): 665-671.
11. Dunn, Thomas Albert
Essays on the Economic Linkages Among Family Members
Ph.D. Dissertation, Northwestern University 1993
Cohort(s): Mature Women, Older Men, Young Men, Young Women
Publisher: UMI - University Microfilms, Bell and Howell Information and Learning
Keyword(s): Education; Family Background; Intergenerational Patterns/Transmission; Labor Market Outcomes; Pairs (also see Siblings); Racial Differences; Transfers, Financial; Wage Equations; Wage Rates; Work Hours

Four essays examine the links between the labor market experiences and economic outcomes of individuals who are related by blood or by marriage using panel data on family member pairs from the National Longitudinal Surveys of Labor Market Experience. The first chapter provides estimates of inter- and intragenerational correlations for a broad set of labor market outcomes. The second chapter estimates a factor model of earnings hours and wages and investigates the extent to which the parental and family characteristics that drive wage rates and work hours independently of wage rates are responsible for similarities among family members in labor market outcomes. The third chapter studies the extent to which the education and experience slopes of wage equations are influenced by parental characteristics and family background variables that predict years of education completed. The fourth chapter investigates the influences of family structure and the earnings of parents and children on the flow of inter vivos cash transfers.
Bibliography Citation
Dunn, Thomas Albert. Essays on the Economic Linkages Among Family Members. Ph.D. Dissertation, Northwestern University 1993.
12. Dunn, Thomas Albert
Holtz-Eakin, Douglas
Capital Market Constraints, Parental Wealth and the Transition to Self-Employment Among Men and Women
NLS Discussion Paper No. 96-29, Washington DC: U.S. Bureau of Labor Statistics, August 1995.
Also: http://stats.bls.gov/ore/abstract/nl/nl950070.htm
Cohort(s): Mature Women, Older Men, Young Men, Young Women
Publisher: U.S. Department of Labor
Keyword(s): Gender Differences; Human Capital; Intergenerational Patterns/Transmission; Parental Influences; Self-Employed Workers; Wealth

The environment for business creation is central to economic policy as entrepreneurs are believed to be forces of innovation, employment and economic dynamism. We use data from the National Longitudinal Surveys (NLS) to investigate the relative impacts of parental wealth and human capital on the probability that an individual will make the transition from a wage and salary job to self-employment, and to examine differences between men and women in the determinants of self-employment. We find that the financial assets of young men exert a statistically significant, but quantitatively modest effect on the probability of self-employment and the transition to self-employment. In contrast, financial assets are not a significant determinant of these activities for young women, casting doubt on the importance of capital market constraints for female entrepreneurs. For both males and females, parents exert a large influence. The channel for this effect runs not through financial means, but rather through intergenerational correlation in self-employment. Moreover, parents are not "created equal"; the influence across generations is stronger along gender lines.
Bibliography Citation
Dunn, Thomas Albert and Douglas Holtz-Eakin. "Capital Market Constraints, Parental Wealth and the Transition to Self-Employment Among Men and Women." NLS Discussion Paper No. 96-29, Washington DC: U.S. Bureau of Labor Statistics, August 1995.
13. Dunn, Thomas Albert
Holtz-Eakin, Douglas
Financial Capital, Human Capital, and the Transition to Self-Employment: Evidence from Intergenerational Links
NBER Working Paper No. 5622, National Bureau of Economic Research, June 1996.
Also: http://nber.nber.org/papers/W5622
Cohort(s): Mature Women, Older Men, Young Men
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Capital Sector; Gender Differences; Human Capital; Intergenerational Patterns/Transmission; Self-Employed Workers

The environment for business creation is central to economic policy, as entrepreneurs are believed to be forces of innovation, employment and economic dynamism. We use data from the National Longitudinal Surveys (NLS) to investigate the relative importance of financial and human capital exploiting the variation provided by intergenerational links. Specifically, we estimate the impacts of parental wealth and human capital on the probability that an individual will make the transition from a wage and salary job to self-employment. We find that young men's own financial assets exert a statistically significant, but quantitatively modest effect on the transition to self-employment. In contrast, the capital of parents exerts a large influence. Parents' strongest effect runs not through financial means, but rather through human capital, i.e., the intergenerational correlation in self-employment. This link is even stronger along gender lines. Full-text available on-line: http://nber.nber.org/papers/W5622
Bibliography Citation
Dunn, Thomas Albert and Douglas Holtz-Eakin. "Financial Capital, Human Capital, and the Transition to Self-Employment: Evidence from Intergenerational Links." NBER Working Paper No. 5622, National Bureau of Economic Research, June 1996.
14. Dunn, Thomas Albert
Holtz-Eakin, Douglas
Financial Capital, Human Capital, and the Transition to Self-Employment: Evidence from Intergenerational Links
Journal of Labor Economics 18,2 (April 2000): 282-305.
Also: http://www.jstor.org/stable/10.1086/209959
Cohort(s): Mature Women, Older Men, Young Men
Publisher: University of Chicago Press
Keyword(s): Assets; Family Income; Human Capital; Intergenerational Patterns/Transmission; Parental Influences; Self-Employed Workers; Wages

We use data from the National Longitudinal Surveys to investigate the relative importance of family financial and human capital in the transition into self-employment. Specifically, we estimate the impacts of individual's own wealth and human capital and parental wealth and self-employment experience on the probability that an individual transits from wage-and-salary to self-employment. We find young men's own financial assets exert a statistically significant but quantitatively modest effect on the transition. In contrast, parents' capital exerts a large influence. Parents' strongest effect runs, not through financial means, but rather through their own self-employment experience and business success.
Bibliography Citation
Dunn, Thomas Albert and Douglas Holtz-Eakin. "Financial Capital, Human Capital, and the Transition to Self-Employment: Evidence from Intergenerational Links." Journal of Labor Economics 18,2 (April 2000): 282-305.