This paper investigates parental time investment in children prior to formal schooling as a source of intergenerational … income persistence in the U.S. I develop a dynamic general equilibrium model where lifetime income endogenously persists … including the U.S. income quintile transition matrix. I find that the parental time investment channel accounts for nearly 40 …

explained by improvements in early parental investment. This study demonstrates that boosting children's early cognitive skills …

for education play a larger role in determining income at age 25 than cognitive skills. Last, our analysis uncovers …