Navigation Links
Dad's Smarts May Mean More to His Son's Success Than His Money

By Randy Dotinga
HealthDay Reporter

THURSDAY, July 13 (HealthDay News) -- A new study suggests that a father's education and training has more to do with whether his son will make the same amount of money than whether his son inherits his wealth.

The research, based on statistics from Sweden, offers more insight into what economists call "human capital" -- the value of people in terms of work based on their various talents and skills. Economists have wondered how much people's human capital is passed down from generation to generation.

"If your goal is to benefit and increase the income in the next generation, the money spent on increasing training and education in the current generation is more effective than just transferring money to people," said study co-author David Sims, an associate professor of economics at Brigham Young University in Provo, Utah.

Connections between the incomes of fathers and daughters, mothers and daughters and mothers and sons are difficult to establish, Sims said, because researchers go back many generations in search of patterns and women then didn't work as much.

Although the role of women will get more of a focus in the future, he said, the current study looked at the issue at hand in men: Through what channels do fathers transmit their higher or lower income to their children?

The researchers examined 35 percent of boys born in Sweden between 1950 and 1965 and their fathers. They also looked at the incomes of the fathers and sons once the sons were adults.

Although Americans may think of the United States as the land of upward mobility, it is actually more difficult to move out of a family's income level here than in Scandinavian countries, Sims said.

Gary Solon, a professor of economics at Michigan State University in East Lansing, put it this way: "Among rich countries, the United States is not particularly mobile, in the sense that the correlation between parents' and offspring's income is relatively high in our country."

Sims and his colleagues found that a father's education and training were better predictors of a son's income level than factors such as inherited income.

The study didn't factor in genetics, Sims said. "We're not able to distinguish human capital due to genetics versus the change in environment that comes from being better educated."

Solon said the research is important "if you care about income inequality."

"It tells us something we ought to know about the nature of income inequality -- how much difference does it make for economic success if one comes from a rich family versus a poor family?" he said.

The study appears in a recent issue of the Journal of Political Economy.

More information has more on teaching your kids about money.

SOURCES: David Sims, Ph.D., associate professor, economics, Brigham Young University, Provo, Utah; Gary Solon, Ph.D., professor, economics, Michigan State University, East Lansing; April 2012, Journal of Political Economy

Copyright©2012 ScoutNews,LLC.
All rights reserved  

Related medicine news :

1. UTSA study finds ovulating women perceive sexy cads as good dads
2. Older Dads May Pass on Longevity to Kids, Study Finds
3. Anxiety Linked to Smarts in Brain Study
4. Infant Smarts Similar With Different Types of Formula: Study
5. The Attilio Group’s TAG™-Simply Faster Taps SmartSales To Accelerate Its Expansion Into National Reach
6. Interpreting the Avastin-Lucentis study for persons with macular degeneration
7. Sleep improves functioning in Parkinsons patients, but reasons remain elusive
8. Herpes Treatment Site: Top Reasons to Avoid Prescription HSV Drugs
9. 12 Reasons Why You Should Live Stream Your Next Event
10. APA task force recommends treatment guidelines and position statements on transgender persons
11. Psychological testing may predict success in soccer
Post Your Comments:
Related Image:
Dad's Smarts May Mean More to His Son's Success Than His Money
(Date:11/26/2015)... ... November 26, 2015 , ... WorldCare International, Inc., ... the 61st annual Employee Benefits Conference. The Employee Benefits Conference was hosted by ... through Wednesday, November 11th, 2015. The conference was held at the Hawaii Convention ...
(Date:11/26/2015)... ... November 26, 2015 , ... Indosoft Inc., developer and distributor of ... server to improve system efficiency and reliability. , The new Q-Suite 6 platform is ... the system avoids locking itself into a specific piece of software for many key ...
(Date:11/25/2015)... ... November 25, 2015 , ... ... preparing the perfect dish and pleasing the palates of attendees is of the ... a dish to a seasonal get-together, give these recipes a try this holiday ...
(Date:11/25/2015)... , ... November 25, 2015 , ... ... offering factory direct sauna parts and accessories. , Sauna accessories help improve the ... bather’s style and personality. From basic styles for the purist looking for simplicity ...
(Date:11/25/2015)... ... ... On November 10, 2015, Bohrer Brady, LLC filed a class and collective ... home health care worker who provided companionship services for the elderly, ill or disabled ... Humana, Inc., Humana at Home, Inc., and SeniorBridge Family Companies (CT), Inc. since January ...
Breaking Medicine News(10 mins):
(Date:11/25/2015)... 2015  Amgen (NASDAQ: AMGN ) today announced ... the United States (U.S.) Food ... candidate to Humira ® (adalimumab). Amgen believes this ... the FDA and represents Amgen,s first BLA submission using ... , M.D., executive vice president of Research and Development ...
(Date:11/25/2015)... -- On Tuesday, November 24, 2015, the jury ... Medical Technology, Inc. for product liability and misrepresentation ... device, awarded $11 million in favor of Plaintiff ... three days of deliberations, the jury found that ... and unreasonably dangerous, and that Wright Medical made ...
(Date:11/25/2015)... Nov. 25, 2015 Allergan plc (NYSE: AGN ... the New York State Attorney General,s ... Sherman Act, and other statutes with the Attorney General over ... to cease marketing and selling the now generic version of ... admits no liability, has released its counterclaims against ...
Breaking Medicine Technology: