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Correlations between sisters and neighbouring girls in their subsequent income as adults

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  • Marianne E. Page

    (Department of Economics, University of California at Davis, Davis, CA 95616, USA)

  • Gary Solon

    (Department of Economics, University of Michigan, Ann Arbor, MI 48109, USA)

Abstract

This study uses data on sisters and neighbouring girls in the Panel Study of Income Dynamics to estimate sister and neighbour correlations in adult income. Our results suggest that the income resemblance between sisters stems more from growing up in the same family than from growing up in the same neighbourhood. We also find that much of the neighbour correlation is explicable in terms of the large income differential between urban and non-urban areas combined with the strength with which urbanicity of childhood neighbourhood predicts urbanicity of adult location. This pattern is subject to a variety of interpretations, but it is quite different from the usual view of neighbourhood effects. Copyright © 2003 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jae.739
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 18 (2003)
Issue (Month): 5 ()
Pages: 545-562

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Handle: RePEc:jae:japmet:v:18:y:2003:i:5:p:545-562

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References

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  1. Gary Solon & Marianne E. Page & Greg J. Duncan, 2000. "Correlations Between Neighboring Children In Their Subsequent Educational Attainment," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 383-392, August.
  2. Zvi Griliches & Jerry A. Hausman, 1984. "Errors in Variables in Panel Data," NBER Technical Working Papers 0037, National Bureau of Economic Research, Inc.
  3. Gary Solon & Mary Corcoran & GRoger Gordon & Deborah Laren, 1991. "A Longitudinal Analysis of Sibling Correlations in Economic Status," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 509-534.
  4. Gary Solon & Mary Corcoran & Roger Gordon & Deborah Laren, 1988. "Sibling and Intergenerational Correlations in Welfare Program Participation," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 388-396.
  5. Kunz, Jim & Page, Marianne E. & Solon, Gary, 2003. "Are point-in-time measures of neighborhood characteristics useful proxies for children's long-run neighborhood environment?," Economics Letters, Elsevier, vol. 79(2), pages 231-237, May.
  6. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-42, April.
  7. Michael Kremer, 1996. "How Much Does Sorting Increase Inequality?," NBER Working Papers 5566, National Bureau of Economic Research, Inc.
  8. 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.
  9. Joseph G. Altonji & Thomas A. Dunn, 1991. "Relationships Among the Family Incomes and Labor Market Outcomes of Relatives," NBER Working Papers 3724, National Bureau of Economic Research, Inc.
  10. Mary Corcoran & Roger Gordon & Deborah Laren & Gary Solon, 1992. "The Association between Men's Economic Status and Their Family and Community Origins," Journal of Human Resources, University of Wisconsin Press, vol. 27(4), pages 575-601.
  11. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
  12. Durlauf, S.N., 1992. "A Theory of Persistent Income Inequality," Papers 47, Stanford - Institute for Thoretical Economics.
  13. Marianne E. Page & Gary Solon, 2003. "Correlations between Brothers and Neighboring Boys in Their Adult Earnings: The Importance of Being Urban," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 831-856, October.
  14. Benabou, Roland, 1996. "Equity and Efficiency in Human Capital Investment: The Local Connection," Review of Economic Studies, Wiley Blackwell, vol. 63(2), pages 237-64, April.
  15. Peter Gottschalk & John Fitzgerald & Robert Moffitt, 1997. "An Analysis of the Impact of Sample Attrition on the Second Generation of Respondents in the Michigan Panel Study of Income Dynamics," Boston College Working Papers in Economics 399, Boston College Department of Economics.
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Cited by:
  1. Jeffrey R. Kling & Jeffrey B. Liebman & Lawrence F. Katz & Lisa Sanbonmatsu, 2004. "Moving To Opportunity And Tranquility: Neighborhood Effects On Adult Economic Self-Sufficiency And Health From A Randomized Housing Voucher Experiment," Working Papers 247, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
  2. Björklund, Anders & Jäntti, Markus, 2012. "How important is family background for labor-economic outcomes?," Labour Economics, Elsevier, vol. 19(4), pages 465-474.
  3. Francesconi, Marco & Nicoletti, Cheti, 2004. "Intergenerational mobility and sample selection in short panels," ISER Working Paper Series 2004-17, Institute for Social and Economic Research.
  4. Islam, TM Tonmoy, 2013. "Childhood neighborhood conditions and the persistence of adult income," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 684-693.
  5. Björklund, Anders & Lindahl, Lena & Lindquist, Matthew J., 2008. "What More Than Parental Income? An Exploration of What Swedish Siblings Get from Their Parents," IZA Discussion Papers 3735, Institute for the Study of Labor (IZA).

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