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How Important Is the Family?: Evidence from Sibling Correlations in Permanent Earnings in the US, Germany and Denmark

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  • Daniel D. Schnitzlein

Abstract

This paper is the first to analyze intergenerational economic mobility based on sibling correlations in permanent earnings in Germany and to provide a cross-country comparison of Germany, Denmark, and the US. The main findings are as follows: the importance of family and community background in Germany is higher than in Denmark and comparable to that in the US. This holds true for brothers and sisters. In Denmark 20 percent of the inequality in permanent earnings can be attributed to family and community factors shared by brothers while the corresponding estimates are 43 percent in Germany and 45 percent in the US. For sisters the estimates are 19 percent for Denmark, 39 percent for Germany and 29 percent for the US. This ranking is shown to be robust against alternative approaches.

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Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers with number 365.

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Length: 32 p.
Date of creation: 2011
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp365

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Keywords: Sibling correlations; intergenerational mobility; inequality; REML;

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References

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  1. Markus Jäntti & Eva Österbacka & Oddbjörn Raaum & Tor Eriksson & Anders Björklund, 2002. "Brother correlations in earnings in Denmark, Finland, Norway and Sweden compared to the United States," Journal of Population Economics, Springer, vol. 15(4), pages 757-772.
  2. Anders Björklund & Markus Jäntti & Matthew J. Lindquist, 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).
  3. Anders Björklund & Lena Lindahl & Matthew J. Lindquist, 2010. "What More Than Parental Income, Education and Occupation? An Exploration of What Swedish Siblings Get from Their Parents," The B.E. Journal of Economic Analysis & Policy, Berkeley Electronic Press, vol. 10(1), pages 102.
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  1. Quantifying luck egalitarianism
    by chris dillow in Stumbling and Mumbling on 2011-03-28 13:42:11

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