Race/Ethnicity Differences in Intergenerational Economic Mobility between Mothers and Adult Children

Purpose: As many women  increasingly engage in the labor market, their economic activities tend to influence their children's economic status, given the close attachment between mothers and children. However, little research has addressed economic mobility between maternal economic well-being and children's economic well-being. The purpose of this study is to explore intergenerational economic mobility. Specific questions include: 1) Are there ethnic/racial disparities in economic well-being among mother and children? 2) Does maternal economic well-being influence children's economic well-being; and 3) Does this association differ across race/ethnicity?

Methods: The data used in this study has been obtained from both the National Longitudinal Survey of Youth 1979 (NLSY79) collected from 1979 to 2012 and the National Longitudinal Survey of Youth 79 for Children and Young Adults (NLSY79 CY) collected from 1986 to 2012. This study used the latest wave collected in 2012 from both data sets, with the sample of mothers coming from the NLSY79 and the sample of children provided by the NLSY79 CY. The two data sets were merged to match children with their mothers based on respective  identification numbers.  The study sample were 2,523 pairs including 1,245 Non-Hispanic Whites, 740 Blacks, and 538 Hispanics. Maternal economic well-being was measured by net worth and poverty, and children's economic well-being was measured by employment and income. Individual characteristics controlled  were: age, education, marital status for both mother and children, and children's gender. Logistic regression analyses as well as ordinary linear regression analyses were conducted to examine the research questions.

Results: In terms of maternal economic well-being, both Blacks and Hispanics were less likely to accumulate net worth compared to Non-Hispanic Whites. They were also at greater risks of being in poverty compared to Non-Hispanic Whites. Maternal economic well-being influences children's income in that net worth was positively associated with children’s income while poverty was negatively associated with children’s income. The relationship between maternal net worth and children's income is more salient in Blacks than other ethnic/racial groups.

Implications: Given that maternal economic well-being has an impact on children's economic well-being, a secure economic environment for women is important to prevent downward economic mobility among their children. Ethnic differences in economic well-being imply that economic development programs should target female minorities and address injustice in the labor market to reduce racial/ethical disparities among women. In particular, . Black women with children may need more attention from anti-poverty intervention and educational programs regarding asset accumulation rather than Non-Hispanic Whites and Hispanic women.