On the Intergenerational Persistence of Work Hours

This paper studies the intergenerational persistence of work hours. In particular, I look at the correlation of hours between fathers and sons in the U.S. Using data from the Panel study of Income Dynamics, I find a strong persistence in the permanent component of hours worked. I investigate the extent this correlation is explained by (i) persistence in wages, (ii) correlation in leisure preferences, and (iii) intergenerational wealth transfers. I also examine the role of work effort in the transmission of earnings across generations. To this end, I provide a quantitative model of intergenerational transmission of human capital and wealth. I find that the observed persistence in hours is mostly explained by the intergenerational correlation of leisure preferences. Moreover, the latter also plays an important role in accounting for the similarities in earnings between parents and children. However, the transmission of wages across generations explains a larger fraction of the earnings dynamics