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Family background and income during the rise of the welfare state: Brother correlations in income for Swedish men born 1932-1968

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Author Info
Björklund, Anders
Jäntti, Markus
Lindquist, Matthew J.

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Abstract

We investigate if the association between family background and income in Sweden has changed for men born between 1932 and 1968. Our main finding is that the share of the variance in long-run income that is attributable to family background, the so-called brother correlation in income, has fallen by some 17% from 0.49 for the cohorts of brothers born in the early 1930s to below 0.32 for the cohorts born around 1950. From then on, the correlations have inched back up to around 0.37. We report suggestive evidence that the decline is driven by changes in education.

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Publisher Info
Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 93 (2009)
Issue (Month): 5-6 (June)
Pages: 671-680
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Handle: RePEc:eee:pubeco:v:93:y:2009:i:5-6:p:671-680

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Web page: http://www.elsevier.com/locate/inca/505578

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Related research
Keywords: Sibling correlation Intergenerational mobility Family background;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Grawe, Nathan D., 2003. "Life Cycle Bias in the Estimation of Intergenerational Earnings Persistence," Analytical Studies Branch Research Paper Series 2003207e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  2. Per-Anders Edin & Bertil Holmlund, 1995. "The Swedish Wage Structure: The Rise and Fall of Solidarity Wage Policy?," NBER Chapters, in: Differences and Changes in Wage Structures, pages 307-344 National Bureau of Economic Research, Inc. [Downloadable!]
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  3. Anders Bohlmark & Matthew J. Lindquist, 2006. "Life-Cycle Variations in the Association between Current and Lifetime Income: Replication and Extension for Sweden," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 879-900, October. [Downloadable!]
  4. Bhashkar Mazumder, 2004. "Sibling similarities, differences and economic inequality," Working Paper Series WP-04-13, Federal Reserve Bank of Chicago. [Downloadable!]
  5. Björklund, Anders & Eriksson, Tor & Jäntti, Markus & Raaum, Oddbjörn & Österbacka, Eva, 2000. "Brother Correlations in Earnings in Denmark, Finland, Norway and Sweden Compared to the United States," IZA Discussion Papers 158, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," American Economic Review, American Economic Association, vol. 96(4), pages 1308-1320, September. [Downloadable!]
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  7. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800 Elsevier. [Downloadable!] (restricted)
  8. Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1.
  9. Kearl, J R & Pope, Clayne L, 1986. "Unobservable Family and Individual Contributions to the Distributionsof Income and Wealth," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S48-79, July. [Downloadable!] (restricted)
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This page was last updated on 2009-12-3.

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