| This dissertation explores the impact of parental wealth on the educational and homeownership outcomes of children. These two major life events entail costs that are often beyond what children can afford, thus, parents may utilize their own assets to provide assistance. Employing the use of a two-generation longitudinal dataset from the National Longitudinal Surveys of Original Cohorts (roughly the babyboom generation and their parents), I examine how parental assets impact various educational and homeownership outcomes of children. Using the disaggregated measures of parental wealth---financial assets, homeownership status and value of home---I also explore whether the mechanisms through which advantages are transferred can be attributed to financial or social influences. Analyses reveal parental assets (net of other background and demographic factors) improve a child's overall educational attainment and the probability of entering and completing higher levels of education. As well, parental wealth is associated with both a faster entry into owner-occupation and greater value of homes for children. Given the well-documented differences in wealth and homeownership between racial groups, this dissertation also investigates the extent to which parental wealth may explain the replication of inequality across generations. This is examined through an exploration of differences in parental wealth effects on homeownership outcomes between blacks and whites. |
