Economists normally study wealth formation and inequality among the adult population, but some people already possess economic resources in early childhood. This column uses data from Denmark to examine childhood wealth and the role of wealth transfers early in life. A main result is that wealth inequality starts as early as childhood. Although overall wealth levels in childhood are low, they are better predictors of wealth in adulthood than parental wealth.
Simon Boserup, Wojciech Kopczuk, Claus Kreiner, 04 November 2016
Wolfgang Frimmel, Martin Halla, Rudolf Winter-Ebmer, 18 August 2016
It has been widely demonstrated that parental divorce is associated with negative outcomes for affected children. However, the degree of causality in this relationship is not as clear. This column tackles this problem by using the level of gender integration in fathers’ workplaces as an instrument for divorce. The results suggest a causal link between divorce and worse economic outcomes that persists into early adulthood.
Janet Currie, Tom Vogl, 15 November 2012
The global decline in ill health has not been met with greater prosperity. What are we to make of healthier and larger populations undercutting per capita economic progress? This column argues that early-life health changes do, in fact, have a huge effect on economic outcomes over the lifecycle. However, the jury is out on how we can best manage – and measure – the apparent play off between better health, higher populations, and poorer per capita economic outcomes.