Intergenerational disadvantage : learning about equal opportunity from social assistance receipt / Deborah A. Cobb-Clark (University of Sydney, ARC Life Course Centre and IZA), Sarah C. Dahmann (University of Sydney and ARC Life Course Centre), Nicolas Salamanca (University of Melbourne, ARC Life Course Centre and IZA), Anna Zhu (University of Melbourne, ARC Life Course Centre and IZA) ; IZA Institute of Labor Economics
VerfasserCobb-Clark, Deborah A. ; Dahmann, Sarah Christina ; Salamanca, Nicolás ; Zhu, Anna
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, October 2017
Elektronische Ressource
Umfang1 Online-Ressource (43 Seiten) : Diagramme
SerieDiscussion paper ; no. 11070
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Intergenerational disadvantage [0.42 mb]
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We use variation in the extent of generational persistence across social assistance payments to shed light on the factors leading to intergenerational disadvantage. Our administrative data come from the Australian social security system and provide us with detailed social assistance trajectories - across the entire social safety net - for a birth cohort of young people and their families over an 18-year period. We find that young people are 1.8 times more likely to need social assistance if their parents have a history of receiving social assistance themselves. These young people also receive more intensive support; an additional $12,000 over an 8-year period. The intergenerational correlation is particularly strong in the case of disability payments, payments for those with caring responsibilities, and parenting payments for single parents. Disadvantage stemming from parents' poor labor market outcomes seems to be easier for young people to overcome. This suggests that parental disadvantage may be more harmful to children's later life outcomes if it is more strongly driven by circumstances rather than personal choice.