The Mediating Role of Intergenerational Stratification in the Long Arm of Childhood Income

We use the Panel Study of Income Dynamics to investigate whether and how intergenerational income stratification mediates the long arm of childhood income for mature adult health. Using three different mediation techniques, we analyze prospective high-quality data on childhood income (ages 0-17) and six health outcomes (ages 40-67): self-rated health, psychological distress, heart attack, stroke, and life-threatening and non-life-threatening chronic conditions. We focus on the mediating role of adult income (ages 30-39). For comparison, we also analyze several alternative potential mediators, including education, health behaviors, and occupation. The results show that adult income is a critical mediator in the long arm of childhood income, mediating almost all the relationship for self-rated health and psychological distress, roughly one half of the relationship for heart attack and stroke, and roughly one third of the relationship for life-threatening chronic conditions. The models also confirm that childhood income has a significant mediated or indirect relationship with health outcomes. Further analyses provide evidence that adult income plays a greater mediating role than the alternative potential mediators. Altogether, the evidence supports intergenerational income stratification as a key mediating process within the long arm of childhood income.