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Intergenerational Effects in Sweden: What Can We Learn from Adoption Data?

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Author Info
Björklund, Anders () (SOFI, Stockholm University and IZA Bonn)
Lindahl, Mikael (SOFI, Stockholm University and IZA Bonn)
Plug, Erik (University of Amsterdam, Tinbergen Institute and IZA Bonn)

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Abstract

We explore the adoption data approach to estimating causal effects of parental education and income on the same outcomes of their children. Thanks to a data set drawn from Swedish population registers with detailed information on biological background and history of adoptees, we can test basic assumptions that the adoption strategy relies on. We find that the adoption method survives these tests surprisingly well. Our empirical results suggest that one more year of either mother’s or father’s education raises children’s education by about 0.1 year. Our estimated income elasticities are around 0.1.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1194.

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Length: 57 pages
Date of creation: Jun 2004
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Handle: RePEc:iza:izadps:dp1194

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Related research
Keywords: intergenerational effects; income; education; adoption data;

Other versions of this item:

Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion

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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. Bruce Sacerdote, 2000. "The Nature and Nurture of Economic Outcomes," NBER Working Papers 7949, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Black, Sandra & Devereux, Paul J. & Salvanes, Kjell G, 2003. "Why the Apple Doesn't Fall: Understanding Intergenerational Transmission of Human Capital," CEPR Discussion Papers 4150, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  3. Arnaud Chevalier, 2004. "Parental Education and Childs Education: A Natural Experiment," CEE Discussion Papers 0040, Centre for the Economics of Education, LSE. [Downloadable!]
    Other versions:
  4. Erik Plug & Wim Vijverberg, 2005. "Does Family Income Matter for Schooling Outcomes? Using Adoptees as a Natural Experiment," Economic Journal, Royal Economic Society, vol. 115(506), pages 879-906, October. [Downloadable!] (restricted)
  5. Bruce Sacerdote, 2002. "The Nature and Nurture of Economic Outcomes," American Economic Review, American Economic Association, vol. 92(2), pages 344-348, May. [Downloadable!]
  6. Erik Plug, 2004. "Estimating the Effect of Mother's Schooling on Children's Schooling Using a Sample of Adoptees," American Economic Review, American Economic Association, vol. 94(1), pages 358-368, March. [Downloadable!]
  7. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2003. "Why the apple doesn't fall far: understanding intergenerational transmission of human capital," CeMMAP working papers CWP16/03, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
    Other versions:
  8. Goldberger, Arthur S, 1979. "Heritability," Economica, London School of Economics and Political Science, vol. 46(184), pages 327-47, November. [Downloadable!] (restricted)
  9. Philip Oreopoulos & Marianne E. Page & Ann Huff Stevens, 2003. "Does Human Capital Transfer from Parent to Child? The Intergenerational Effects of Compulsory Schooling," NBER Working Papers 10164, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Bjorklund, Anders & Jantti, Markus, 1997. "Intergenerational Income Mobility in Sweden Compared to the United States," American Economic Review, American Economic Association, vol. 87(5), pages 1009-18, December. [Downloadable!] (restricted)
  11. Das, Mitali & Sjogren, Tanja, 2002. "The inter-generational link in income mobility: evidence from adoptions," Economics Letters, Elsevier, vol. 75(1), pages 55-60, March. [Downloadable!] (restricted)
  12. Taubman, Paul, 1976. "The Determinants of Earnings: Genetics, Family, and Other Environments; A Study of White Male Twins," American Economic Review, American Economic Association, vol. 66(5), pages 858-70, December. [Downloadable!] (restricted)
  13. Case, Anne & Lin, I-Fen & McLanahan, Sara, 2000. "How Hungry Is the Selfish Gene?," Economic Journal, Royal Economic Society, vol. 110(466), pages 781-804, October. [Downloadable!] (restricted)
    Other versions:
  14. Dearden, Lorraine & Machin, Stephen & Reed, Howard, 1997. "Intergenerational Mobility in Britain," Economic Journal, Royal Economic Society, vol. 107(440), pages 47-66, January. [Downloadable!] (restricted)
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  15. Bjorklund, Anders & Chadwick, Laura, 2003. "Intergenerational income mobility in permanent and separated families," Economics Letters, Elsevier, vol. 80(2), pages 239-246, August. [Downloadable!] (restricted)
  16. Jere R. Behrman & Mark R. Rosenzweig, 2002. "Does Increasing Women's Schooling Raise the Schooling of the Next Generation?," American Economic Review, American Economic Association, vol. 92(1), pages 323-334, March. [Downloadable!]
Full references

Cited by:
(explanations, 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. Chevalier, Arnaud & Harmon, Colm & O’Sullivan, Vincent & Walker, Ian, 2005. "The Impact of Parental Income and Education on the Schooling of Their Children," IZA Discussion Papers 1496, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Bruce Sacerdote, 2004. "What Happens When We Randomly Assign Children to Families?," NBER Working Papers 10894, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Anders Björklund & Mikael Lindahl & Erik Plug, 2005. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data," IZA Discussion Papers 1739, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Haoming Liu & Jinli Zeng, 2009. "Genetic ability and intergenerational earnings mobility," Journal of Population Economics, Springer, vol. 22(1), pages 75-95, January. [Downloadable!] (restricted)
  5. Jencks, Christopher & Tach, Laura, 2005. "Would Equal Opportunity Mean More Mobility?," Working Paper Series rwp05-037, Harvard University, John F. Kennedy School of Government. [Downloadable!]
  6. Philipp Bauer & Regina Riphahn, 2007. "Heterogeneity in the intergenerational transmission of educational attainment: evidence from Switzerland on natives and second-generation immigrants," Journal of Population Economics, Springer, vol. 20(1), pages 121-148, February. [Downloadable!] (restricted)
    Other versions:
  7. Björklund, Anders, 2006. "Family Background and Outcomes Later in Life: A (Partial and Personal) Survey of Recent Research Using Swedish Register Data," Working Paper Series 4/2007, Swedish Institute for Social Research. [Downloadable!]
  8. Nekby, Lena & Özcan, Gülay, 2007. "Do Domestic Educations Even Out the Playing Field? Ethnic Labor Market Gaps in Sweden," SULCIS Working Papers 2007:3, Stockholm University Linnaeus Center for Integration Studies - SULCIS. [Downloadable!]
    Other versions:
  9. de Walque, Damien, 2005. "Parental education and children's schooling outcomes : is the effect nature, nurture, or both? evidence from recomposed families in Rwanda," Policy Research Working Paper Series 3483, The World Bank. [Downloadable!]
  10. Mihails Hazans & Ija Trapeznikova & Olga Rastrigina, 2008. "Ethnic and parental effects on schooling outcomes before and during the transition: evidence from the Baltic countries," Journal of Population Economics, Springer, vol. 21(3), pages 719-749, July. [Downloadable!] (restricted)
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