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Unobservable Family and Individual Contributions to the Distributionsof Income and Wealth

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  • Kearl, J R
  • Pope, Clayne L
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    Abstract

    This paper uses combinations of full brothers, half brothers, and fathers and sons to measure the effect of common family background on a household's income and wealth. Intraclass correlations of half brothers, compared to those for full brothers, suggest that fathers play a dominant role in the transmission of the common family effect. When unobserved background is decomposed into individual and family effects, the individual effect dominates the family effect for income, while the family effect dominates the individual effect for wealth. Copyright 1986 by University of Chicago Press.

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    Bibliographic Info

    Article provided by University of Chicago Press in its journal Journal of Labor Economics.

    Volume (Year): 4 (1986)
    Issue (Month): 3 (July)
    Pages: S48-79

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    Handle: RePEc:ucp:jlabec:v:4:y:1986:i:3:p:s48-79

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    Web page: http://www.journals.uchicago.edu/JOLE/

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    Cited by:
    1. Björklund, Anders & Jäntti, Markus & Lindquist, Matthew J., 2007. "Family Background and Income during the Rise of the Welfare State: Brother Correlations in Income for Swedish Men Born 1932-1968," IZA Discussion Papers 3000, Institute for the Study of Labor (IZA).
    2. Gary Solon & Mary Corcoran & Roger H. Gordon & Deborah Laren, 1987. "The Effect of Family Background on Economic Status: A Longitudinal Analysis of Sibling Correlations," NBER Working Papers 2282, National Bureau of Economic Research, Inc.
    3. Couch, Kenneth A. & Lillard, Dean R., 1998. "Sample selection rules and the intergenerational correlation of earnings," Labour Economics, Elsevier, vol. 5(3), pages 313-329, September.
    4. Melinda C. Miller, 2011. "Land and Racial Wealth Inequality," American Economic Review, American Economic Association, vol. 101(3), pages 371-76, May.
    5. Kerwin Kofi Charles & Erik Hurst, 2002. "The Correlation of Welath Across Generations," NBER Working Papers 9314, National Bureau of Economic Research, Inc.

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