Advanced Search
MyIDEAS: Login to save this paper or follow this series

Marital Sorting, Household Labor Supply, and Intergenerational Earnings Mobility across Countries

Contents:

Author Info

  • Raaum, Oddbjørn

    ()
    (Ragnar Frisch Centre for Economic Research)

  • Bratsberg, Bernt

    ()
    (Ragnar Frisch Centre for Economic Research)

  • Røed, Knut

    ()
    (Ragnar Frisch Centre for Economic Research)

  • Österbacka, Eva

    ()
    (Abo Akademi University)

  • Eriksson, Tor

    ()
    (Aarhus School of Business)

  • Jäntti, Markus

    ()
    (SOFI, Stockholm University)

  • Naylor, Robin

    ()
    (University of Warwick)

Abstract

We present comparable evidence on intergenerational earnings mobility for Denmark, Finland, Norway, the UK and the US, with a focus on the role of gender and marital status. We confirm that earnings mobility in the Nordic countries is typically greater than in the US and in the UK, but find that, in contrast to all other groups, for married women mobility is approximately uniform across countries when estimates are based on women's own earnings. Defining offspring outcomes in terms of family earnings, on the other hand, leads to estimates of intergenerational mobility in the Nordic countries which exceed those for the US and the UK for both men and women, single and married. Unlike in the Nordic countries, we find that married women with children and with husbands from affluent backgrounds tend to exhibit reduced labor supply in the US and the UK. In these countries, it is the combination of assortative mating and labor supply responses which weakens the association between married women's own earnings and their parents' earnings.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://ftp.iza.org/dp3037.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3037.

as in new window
Length: 57 pages
Date of creation: Sep 2007
Date of revision:
Publication status: published in: B.E. Journal of Economic Analysis and Policy: Advances in Economic Analysis and Policy, 2007, 7 (2), Article 7
Handle: RePEc:iza:izadps:dp3037

Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

Keywords: joint labor supply; intergenerational mobility; assortative mating;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Helena Holmlund, 2008. "Intergenerational Mobility and Assortative Mating: Effects of an Educational Reform," CEE Discussion Papers 0091, Centre for the Economics of Education, LSE.
  2. Peters, H Elizabeth, 1992. "Patterns of Intergenerational Mobility in Income and Earnings," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 456-66, August.
  3. Nathan D. Grawe, 2004. "Reconsidering the Use of Nonlinearities in Intergenerational Earnings Mobility as a Test for Credit Constraints," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
  4. Juhn, Chinhui & Murphy, Kevin M, 1997. "Wage Inequality and Family Labor Supply," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 15(1), pages 72-97, January.
  5. Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 4(3), pages S1-39, July.
  6. Lorraine Dearden & Steve Machin & Howard Reed, 1995. "Intergenerational mobility in Britain," IFS Working Papers, Institute for Fiscal Studies W95/20, Institute for Fiscal Studies.
  7. Sara LaLumia, 2006. "The Effects of Joint Taxation of Married Couples on Labor Supply and Non-wage Income," Working Papers, Department of Economics, College of William and Mary 28, Department of Economics, College of William and Mary.
  8. Bratberg, Espen & Nilsen, Øivind Anti & Vaage, Kjell, 2005. "Intergenerational Mobility: Trends Across the Earnings Distribution," IZA Discussion Papers 1517, Institute for the Study of Labor (IZA).
  9. Fernández, Raquel & Guner, Nezih & Knowles, John, 2001. "Love and Money: A Theoretical and Empirical Analysis of Household Sorting and Inequality," CEPR Discussion Papers 3040, C.E.P.R. Discussion Papers.
  10. Colm Harmon & Hessel Oosterbeek & Ian Walker, 2003. "The Returns to Education: Microeconomics," Journal of Economic Surveys, Wiley Blackwell, vol. 17(2), pages 115-156, 04.
  11. Michael Svarer & Helena Skyt Nielsen, 2006. "Educational Homogamy: Preferences or Opportunities?," Economics Working Papers, School of Economics and Management, University of Aarhus 2006-10, School of Economics and Management, University of Aarhus.
  12. Gregory D. Hess, 2001. "Marriage and Consumption Insurance: What’s Love Got to do With It?," CESifo Working Paper Series 507, CESifo Group Munich.
  13. Bratsberg,Bernt & Røed, Knut & Raaum, Oddbjørn & Naylor, Robin & Jäntti, Markus & Eriksson, Tor & Österbacka, Eva, 2007. "Nonlinearities in Intergenerational Earnings Mobility : Consequences for Cross-Country Comparisons," The Warwick Economics Research Paper Series (TWERPS) 782, University of Warwick, Department of Economics.
  14. Jäntti, Markus & Bratsberg, Bernt & Røed, Knut & Raaum, Oddbjørn & Naylor, Robin & Österbacka, Eva & Bjørklund, Anders & Eriksson, Tor, 2005. "American exceptionalism in a new light: a comparison of intergenerational earnings mobility in the Nordic countries, the United Kingdom and the United States," Memorandum 34/2005, Oslo University, Department of Economics.
  15. Francine D. Blau & Lawrence M. Kahn, 2005. "Do Cognitive Test Scores Explain Higher U.S. Wage Inequality?," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 184-193, February.
  16. Eckstein, Zvi & Wolpin, Kenneth I, 1989. "Dynamic Labour Force Participation of Married Women and Endogenous Work Experience," Review of Economic Studies, Wiley Blackwell, vol. 56(3), pages 375-90, July.
  17. Osterbacka, Eva, 2001. " Family Background and Economic Status in Finland," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(3), pages 467-84, September.
  18. Lam, David & Schoeni, Robert F, 1993. "Effects of Family Background on Earnings and Returns to Schooling: Evidence from Brazil," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 101(4), pages 710-40, August.
  19. Francine D. Blau & Lawrence M. Kahn, 2005. "Changes in the Labor Supply Behavior of Married Women: 1980-2000," NBER Working Papers 11230, National Bureau of Economic Research, Inc.
  20. Osterberg, Torun, 2000. "Intergenerational Income Mobility in Sweden: What Do Tax-Data Show?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(4), pages 421-36, December.
  21. Antecol, Heather, 2000. "An examination of cross-country differences in the gender gap in labor force participation rates," Labour Economics, Elsevier, vol. 7(4), pages 409-426, July.
  22. Raquel Fernandez & Alessandra Fogli, 2005. "Culture: An Empirical Investigation of Beliefs, Work, and Fertility," NBER Working Papers 11268, National Bureau of Economic Research, Inc.
  23. Carneiro, Pedro & Heckman, James J., 2002. "The Evidence on Credit Constraints in Post-Secondary Schooling," IZA Discussion Papers 518, Institute for the Study of Labor (IZA).
  24. James McIntosh & Martin Munk, 2007. "Scholastic ability vs family background in educational success: evidence from Danish sample survey data," Journal of Population Economics, Springer, vol. 20(1), pages 101-120, February.
  25. Kenneth A. Couch & Thomas A. Dunn, 1995. "Intergenerational Correlations in Labor Market Status: A Comparison of the United States and Germany," Discussion Papers of DIW Berlin 111, DIW Berlin, German Institute for Economic Research.
  26. Alan Manning & Barbara Petrongolo, 2008. "The Part-Time Pay Penalty for Women in Britain," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 118(526), pages F28-F51, 02.
  27. Piggott, John & Whalley, John, 1996. "The Tax Unit and Household Production," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 104(2), pages 398-418, April.
  28. Maria Cancian & Deborah Reed, 1998. "Assessing The Effects Of Wives' Earnings On Family Income Inequality," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 73-79, February.
  29. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," NBER Working Papers 11943, National Bureau of Economic Research, Inc.
  30. Joseph G. Altonji & Thomas A. Dunn, 1994. "An Intergenerational Model of Wages, Hours and Earnings," NBER Working Papers 4950, National Bureau of Economic Research, Inc.
  31. Anders Björklund & Markus Jäntti, 2000. "Intergenerational mobility of socio-economic status in comparative perspective," Nordic Journal of Political Economy, Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 26, pages 3-32.
  32. John Ermisch & Marco Francesconi & Thomas Siedler, 2006. "Intergenerational Mobility and Marital Sorting," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 116(513), pages 659-679, 07.
  33. Del Boca, Daniela & Locatelli, Marilena, 2006. "The Determinants of Motherhood and Work Status: A Survey," IZA Discussion Papers 2414, Institute for the Study of Labor (IZA).
  34. John F. Ermisch & Robert E. Wright, 1993. "Wage Offers and Full-Time and Part-Time Employment by British Women," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 111-133.
  35. Dean R. Hyslop, 2001. "Rising U.S. Earnings Inequality and Family Labor Supply: The Covariance Structure of Intrafamily Earnings," American Economic Review, American Economic Association, vol. 91(4), pages 755-777, September.
  36. Corak, Miles, 2006. "Do Poor Children Become Poor Adults? Lessons from a Cross Country Comparison of Generational Earnings Mobility," IZA Discussion Papers 1993, Institute for the Study of Labor (IZA).
  37. Hirvonen, Lalaina, 2006. "Intergenerational Earnings Mobility Among Daughters and Sons: Evidence from Sweden and a Comparison with the United States," Working Paper Series 5/2006, Swedish Institute for Social Research.
  38. Laura Chadwick & Gary Solon, 2002. "Intergenerational Income Mobility Among Daughters," American Economic Review, American Economic Association, vol. 92(1), pages 335-344, March.
  39. Bhashkar Mazumder, 2005. "Fortunate Sons: New Estimates of Intergenerational Mobility in the United States Using Social Security Earnings Data," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 235-255, May.
  40. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
  41. Espen Bratberg & Oivind Anti Nilsen & Kjell Vaage, 2005. "Intergenerational Earnings Mobility in Norway: Levels and Trends," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 419-435, 09.
  42. Paul J. Devereux, 2004. "Changes in Relative Wages and Family Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
  43. Nathan D . Grawe, 2004. "The 3-day Week of 1974 and Earnings Data Reliability in the Family Expenditure Survey and the National Child Development Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(4), pages 567-579, 09.
  44. Barry T. Hirsch, 2005. "Why do part-time workers earn less? The role of worker and job skills," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 58(4), pages 525-551, July.
  45. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
  46. 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.
  47. Aakvik, Arild & Salvanes, Kjell Gunnar & Vaage, Kjell, 2005. "Educational Attainment and Family Background," Working Papers in Economics 10/05, University of Bergen, Department of Economics.
  48. Iulie Aslaksen & Tom Wennemo & Rolf Aaberge, 2000. ""Birds of a Feather Flock Together" The Impact of Choice of Spouse on Family Labor Income Inequality," Discussion Papers 276, Research Department of Statistics Norway.
  49. Ermisch, John & Francesconi, Marco, 2001. "Family Matters: Impacts of Family Background on Educational Attainments," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 68(270), pages 137-56, May.
  50. Inés Hardoy & P�l Schøne, 2006. "The Part-Time Wage Gap in Norway: How Large is It "Really"?," British Journal of Industrial Relations, London School of Economics, vol. 44(2), pages 263-282, 06.
  51. Raquel Fernandez, 2007. "Women, Work, and Culture," NBER Working Papers 12888, National Bureau of Economic Research, Inc.
  52. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 59-66, Summer.
  53. Fernández, Raquel, 2007. "Women, Work and Culture," CEPR Discussion Papers 6153, C.E.P.R. Discussion Papers.
  54. 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, University of Chicago Press, vol. 24(4), pages 879-900, October.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Regina Flake, 2011. "Gender Differences in the Intergenerational Earnings Mobility of Second-Generation Migrants," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0283, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  2. Bratsberg, Bernt & Raaum, Oddbjørn & Røed, Knut, 2011. "Educating Children of Immigrants: Closing the Gap in Norwegian Schools," IZA Discussion Papers 6138, Institute for the Study of Labor (IZA).
  3. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
  4. Raaum, Oddbjørn & Rogstad, Jon & Røed, Knut & Westlie, Lars, 2005. "Young and Out: An Application of a Prospects-Based Concept of Social Exclusion," Memorandum 17/2005, Oslo University, Department of Economics.
  5. Sandra E. Black & Paul J. Devereux, 2010. "Recent Developments in Intergenerational Mobility," Working Papers, Geary Institute, University College Dublin 201025, Geary Institute, University College Dublin.
  6. repec:hal:wpaper:halshs-00786245 is not listed on IDEAS
  7. Luc Arrondel & Nicolas Frémeaux, 2013. ""For richer, for poorer": savings preferences and choice of spouse," PSE Working Papers halshs-00786245, HAL.
  8. McIntosh, James & Munk, Martin D., 2009. "Social class, family background, and intergenerational mobility," European Economic Review, Elsevier, vol. 53(1), pages 107-117, January.
  9. Quheng, Deng & Gustafsson, Björn Anders & Li, Shi, 2012. "Intergenerational Income Persistency in Urban China," IZA Discussion Papers 6907, Institute for the Study of Labor (IZA).
  10. Berglann, Helge & Moen, Espen R. & Røed, Knut & Skogstrøm, Jens Fredrik, 2011. "Entrepreneurship: Origins and returns," Labour Economics, Elsevier, vol. 18(2), pages 180-193, April.
  11. Jantti, Markus & Jenkins, Stephen P., 2013. "Income mobility," ISER Working Paper Series 2013-23, Institute for Social and Economic Research.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp3037. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.