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Heritability and Social Interaction in Labor Market Outcomes: Evidence From the Population of Twins in the United States
September 2026
Working Paper Number:
CES-26-57
We use data on 44,000 twin pairs observed as adolescents in the 2000 Census, linked to their earnings 20 years later, to study the heritability of labor market outcomes. We extend the Classical Twins Design (CTD), which identifies heritability from contrasts between monozygotic and dizygotic twins, to settings where an analyst does not observe zygosity but can measure outcomes for same-sex and opposite-sex twins. We also allow for the presence of a family- and sex-specific component affecting same-sex siblings but only partly shared by opposite-sex siblings. Our extended model identifies heritability from the difference-in-differences of same-sex vs. opposite-sex twins vs. siblings. The estimates indicate strong heritability (h2'''0.36) of log earnings.''Using an AKM (Abowd et al., 1999) decomposition that separates the person-specific component of earnings from employer-specific pay premiums, we find that both components are heritable. The heritability of employer pay premiums, however, is mainly driven by same-sex twins who work at the same firm, suggesting that social interactions may lead to an over-estimate of the genetic component in earnings. Excluding siblings who work together leads to estimates of the heritability of log earnings that are 15% lower. Similar biases may be present in CTD-based estimates of heritability for other social outcomes like education.
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The Long-Run Effects of Parental Homeownership and Housing Quality on Later Life Outcomes
August 2026
Working Paper Number:
CES-26-54
We measure the effects of housing quality and living in renter- versus owner-occupied housing as a child on later life outcomes. Homeownership is the primary source of most US households' wealth, and homeownership and housing quality potentially have large impacts on children, yet we know relatively little about any long-term effects. Ownership and housing quality are correlated with income, neighborhood characteristics, and many other socioeconomic characteristics, making causal estimation difficult. Using the US Census Bureau's data linkage infrastructure, we create a new data linkage between the American Housing Survey (1995-2002) and administrative tax data (2016-2019), to investigate adult outcomes such as earnings and having a mortgage or owning a home, while comprehensively controlling for a wide variety of variables, including housing quality. We find strong positive correlations with growing up in a parent-owned home, approximately $2,000 higher incomes and a 6 percentage point increased likelihood of ownership. However, we find no evidence of causal effects: unobservables that are significantly less correlated with outcome and treatment than observables would drive the coefficients of interest to zero, and family fixed effects models that compare siblings to each other show no effect of years of childhood spent in an owned home or being born into an owned home.
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CTC and ACTC Participation Results and IRS-Census Match Methodology, Tax Year 2021
August 2026
Working Paper Number:
CES-26-49
The Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC) help ease the financial burden of families with children. This paper provides taxpayer and dollar participation estimates for the CTC and ACTC covering tax year 2021. In this tax year the credit was temporarily expanded under the American Rescue Plan Act. The estimates derive from linking the 2022 Current Population Survey Annual Social and Economic Supplement (CPS ASEC) to IRS administrative data. This approach, called the Exact Match, uses survey data to identify CTC/ACTC eligible taxpayers and IRS administrative data to indicate which eligible taxpayers claimed and received the credit. Overall, in tax year 2021, eligible taxpayers participated in the CTC and ACTC program at a rate of 91 percent while dollar participation was 85 percent.
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How Do Neighborhoods and Firms Affect Intergenerational Mobility?
March 2026
Working Paper Number:
CES-26-18
We use data from the Longitudinal Employer Household Dynamics linked to the 2000 Census to study intergenerational earnings mobility in the United States. We augment the standard intergenerational transmission model relating children's log earnings to those of their parent with an additional term representing mean log parent earnings in the childhood neighborhood. The between-neighborhood intergenerational relationship is twice as strong as the within-neighborhood relationship, even after adjusting for measurement error in parents' earnings. Moreover, mean earnings of the parents in a neighborhood capture over 80% of the variation in unrestricted neighborhood effects that reflect differences in 'absolute mobility'. Next, we use an AKM framework to decompose parents', children's, and neighboring parents' earnings into person effects and establishment premiums. Children's person effects are mainly influenced by parents' and neighbors' person effects, whereas children's establishment premiums are mainly influenced by parents' and neighbors' establishment premiums. These patterns point to separate channels for human capital and access to jobs in the intergenerational transmission process. Finally, we explore the implications for the Black-white earnings gap. Neighborhoods explain 30% of the Black-white gap in children's earnings conditional on parents' earnings, operating largely through gaps in average person effects. Conditional on neighborhood average earnings, children from neighborhoods with higher Black shares achieve higher adult earnings.
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The Mortality Risk of Raising Grandchildren in the United States
February 2026
Working Paper Number:
CES-26-13
In the United States, grandparents who live with and provide primary care to their grandchildren have emerged as a particularly vulnerable group since the 1990s. Using confidential data from the U.S. Census Bureau and Social Security Administration, this study linked individuals aged 50 years or older from the 2000 census long-form sample to their death records from 2000'2019 (weighted n = 64,027,000) and examined the longitudinal association between coresident grandparenting status and mortality for non-Hispanic Whites, non-Hispanic Blacks, Hispanics, and Asians. We found consistently higher rates of mortality for White coresident grandparents and lower rates for Asian coresident grandparents, regardless of the duration of primary caregiving, compared to their peers without coresident grandchildren. We also found increased risks of mortality among Hispanic long-term primary caregivers but reduced risks among Black short-term primary caregivers, compared to their peers without coresident grandchildren.
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Creating High-Opportunity Neighborhoods: Evidence from the HOPE VI Program
January 2026
Working Paper Number:
CES-26-02
We study whether low-economic-mobility neighborhoods can be transformed into high-mobility areas by analyzing the HOPE VI program, which invested $17 billion to revitalize 262 distressed public housing developments. We estimate the program's impacts using a matched difference-in-differences design, comparing outcomes in revitalized developments to observably similar control developments using anonymized tax records. HOPE VI reduced neighborhood poverty rates by attracting higher-income families to revitalized neighborhoods, but had no causal impact on the earnings of adults living in public housing units. Children raised in revitalized public housing units earn more, are more likely to attend college, and are less likely to be incarcerated. Using a movers exposure design and sibling comparisons, we show that these improvements were driven by changes in neighborhoods' causal effects on children's outcomes. The improvements in neighborhood causal effects were driven in large part by changes in social interaction: HOPE VI increased interaction between public housing residents and peers in surrounding neighborhoods and increased earnings more for subgroups with higher-income peers. Many low-income families in the U.S. currently live in neighborhoods that are as socially isolated as the HOPE VI developments were prior to revitalization. We conclude that it is feasible to create high-opportunity neighborhoods and that connecting socially isolated areas to surrounding communities is a cost-effective approach to doing so.
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Kids to School and Moms to Work: New York City's Universal Pre-K Expansion and Mother's Employment
September 2025
Working Paper Number:
CES-25-62
Using the restricted data from American Community Survey from 2011 to 2017, this paper examines the impact of New York City's (NYC) expansion of universal pre-kindergarten (UPK) on labor force participation of mothers with the youngest child of 4 years of age. Starting in Fall of 2014, any child who is 4 years old and residing in NYC for the past year is eligible for UPK for the academic year, for example all children born in 2010 would qualify for the academic year 2014-15. It uses a triple-difference approach - first compare mothers in NYC with the youngest child of 4-year-olds (treated mothers) to mothers with the youngest child of 5 and 6-year-olds (control mothers) before and after the program. Next, it compares this difference with mothers living in adjacent counties in the New York Metropolitan Area (NMA) in New York to NYC. I find that the program increased mothers' labor force participation by 5 percentage points (a 7.5 percent impact) in NYC. The results are robust to various robustness checks like comparing with mothers living in all of NMA and mothers in Philadelphia.
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Housing Capital and Intergenerational Mobility in the United States
August 2025
Working Paper Number:
CES-25-55
Housing represents the most important capital asset for most U.S. families. Despite substantial analysis of the intergenerational mobility of income, large gaps in our knowledge of the distribution of housing assets and their transmission over time remain, as housing is generally not reflected by income flows. Using novel linked data that combines survey responses with administrative tax data and information on ownership and valuation from property tax records for over 3.4 million families, we provide new evidence on the intergenerational transmission of housing capital. We find that housing capital is more persistent across generations than labor income. We document important disparities between average housing outcomes for White and Black children. These difference persist even conditional on parent rank in the distribution of housing assets, with the gap growing throughout the parental housing capital distribution. A decomposition shows that average differences in children's labor market outcomes associated with parental assets explain about half of the observed intergenerational persistence (a 'labor income channel'), and that there is also a substantial 'direct channel' ' conditional on children having the same earnings, children of parents with more housing assets have more assets themselves on average. The direct channel is also important for explaining the intergenerational gap in outcomes of Black and White children. Finally, we present quasi-experimental evidence that local housing supply constraints help explain spatial differences in intergenerational persistence across US counties. Our results establish the importance of housing markets, both independently from and jointly with labor markets, in shaping the intergenerational persistence of economic resources.
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Consequences of Eviction for Parenting and Non-parenting College Students
June 2025
Working Paper Number:
CES-25-35
Amidst rising and increasingly unaffordable rents, 7.6 million people are threatened with eviction each year across the United States'and eviction rates are twice as high for renters with children. One important and neglected population who may experience unique levels of housing insecurity is college students, especially given that one in five college students are parents. In this study, we link 11.9 million student records to eviction filings from housing courts, demographic characteristics reported in decennial census and survey data, incomes reported on tax returns by students and their parents, and dates of birth and death from the Social Security Administration. Parenting students are more likely than non-parenting students to identify as female (62.81% vs. 55.94%) and Black (19.66% vs. 14.30%), be over 30 years old (42.73% vs. 20.25%), and have parents with lower household incomes ($100,000 vs. $140,000). Parenting students threatened with eviction (i.e., had an eviction filed against them) are much more likely than non-threatened parenting students to identify as female (81.18% vs. 62.81%) and Black (56.84% vs. 19.66%). In models adjusted for individual and institutional characteristics, we find that being threatened with an eviction was significantly associated with reduced likelihood of degree completion, reduced post-enrollment income, reduced likelihood of being married post-enrollment, and increased post-enrollment mortality. Among parenting students, 38.38% (95% confidence interval (CI): 32.50-44.26%) of non-threatened students completed a bachelor's degree compared to just 15.36% (CI: 11.61-19.11%) of students threatened with eviction. Our findings highlight the long-term economic and health impacts of housing insecurity during college, especially for parenting students. Housing stability for parenting students may have substantial multigenerational benefits for economic mobility and population health.
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Divorce, Family Arrangements, and Children's Adult Outcomes
May 2025
Working Paper Number:
CES-25-28
Nearly a third of American children experience parental divorce before adulthood. To understand its consequences, we use linked tax and Census records for over 5 million children to examine how divorce affects family arrangements and children's long-term outcomes. Following divorce, parents move apart, household income falls, parents work longer hours, families move more frequently, and households relocate to poorer neighborhoods with less economic opportunity. This bundle of changes in family circumstances suggests multiple channels through which divorce may affect children's development and outcomes. In the years following divorce, we observe sharp increases in teen births and child mortality. To examine long-run effects on children, we compare siblings with different lengths of exposure to the same divorce. We find that parental divorce reduces children's adult earnings and college residence while increasing incarceration, mortality, and teen births. Changes in household income, neighborhood quality, and parent proximity account for 25 to 60 percent of these divorce effects.
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