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The Intergenerational Transmission of Employers in Canada and Denmark

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Author Info

  • Bingley, Paul

    ()
    (SFI - Danish National Centre for Social Research)

  • Corak, Miles

    ()
    (University of Ottawa)

  • Westergård-Nielsen, Niels C.

    ()
    (Copenhagen Business School)

Abstract

The intergenerational transmission of employers between fathers and sons is a common feature of labour markets in Canada and Denmark, with 30 to 40% of young adults having at some point been employed with a firm that also employed their fathers. This is strongly associated with the first jobs obtained during the teen years, but for four to about six percent it also refers to the main job in adulthood. In both countries the transmission of employers is positively associated with paternal earnings, rising distinctly and sharply at the very top of the father's earnings distribution, and has implications for the intergenerational transmission of earnings. Mobility out of the bottom has little to do with inheriting an employer from the father, while the preservation of high income status is distinctly related to this tendency. These findings stress that child adult outcomes are related to the structure of labour markets, and underscore the role of resources parents have – though information, networks, or direct control of the hiring process – in facilitating the job search of their children.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5593.

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Length: 33 pages
Date of creation: Mar 2011
Date of revision:
Publication status: published in: John Ermisch, Markus Jantti, and Timothy Smeeding (editors). From Parents to Children: The Intergenerational Transmission of Advantage. Russell Sage Foundation, 2012.
Handle: RePEc:iza:izadps:dp5593

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Keywords: equality of opportunity; job search; intergenerational mobility;

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References

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  1. Harry J. Holzer, 1986. "Search Method Use by Unemployed Youth," NBER Working Papers 1859, National Bureau of Economic Research, Inc.
  2. Miles Corak & Patrizio Piraino, 2011. "The Intergenerational Transmission of Employers," Journal of Labor Economics, University of Chicago Press, vol. 29(1), pages 37-68, 01.
  3. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
  4. 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).
  5. Linda Datcher Loury, 2006. "Some Contacts Are More Equal than Others: Informal Networks, Job Tenure, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 299-318, April.
  6. Blanchflower, D. & Oswald, A., 1990. "What Makes A Young Entrepreneur?," Papers 373, London School of Economics - Centre for Labour Economics.
  7. Corak, Miles & Piraino, Patrizio, 2010. "Intergenerational Earnings Mobility and the Inheritance of Employers," IZA Discussion Papers 4876, Institute for the Study of Labor (IZA).
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Citations

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Cited by:
  1. Corneo, Giacomo, 2013. "Work Norms, Social Insurance and the Allocation of Talent," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 405, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  2. Bodo Knoll & Nadine Riedel & Eva Schlenker, 2013. "He's a Chip Off the Old Block: The Persistency of Occupational Choices among Generations," SOEPpapers on Multidisciplinary Panel Data Research 561, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Lindsey Macmillan & Claire Tyler & Anna Vignoles, 2013. "Who gets the Top Jobs? The role of family background and networks in recent graduates' access to high status professions," DoQSS Working Papers 13-15, Department of Quantitative Social Science - Institute of Education, University of London.
  4. Björklund, Anders & Roine, Jesper & Waldenström, Daniel, 2008. "Intergenerational Top Income Mobility in Sweden – Capitalist Dynasties in the Land of Equal Opportunity?," Working Paper Series 775, Research Institute of Industrial Economics, revised 27 Sep 2010.
  5. Anna Zaharieva, 2011. "Social Welfare and Wage Inequality in Search Equilibrium with Personal Contacts," Working Papers 459, Bielefeld University, Center for Mathematical Economics.
  6. Bodo Knoll & Nadine Riedel & Eva Schlenker, 2013. "He's a Chip Off the Old Block - The Persistence of Occupational Choices Across Generations," CESifo Working Paper Series 4428, CESifo Group Munich.
  7. Ioan GHIÅžE, 2013. "About Liberal Professions in Romania: Dysfunctions and Disturbances," Management Dynamics in the Knowledge Economy Journal, College of Management, National University of Political Studies and Public Administration, vol. 1(2), pages 317-326, August.
  8. Sweetman, A. & Ours, J.C. van, 2014. "Immigration: What About the Children and Grandchildren?," Discussion Paper 2014-009, Tilburg University, Center for Economic Research.
  9. Lundborg, Petter & Nordin, Martin & Rooth, Dan Olof, 2012. "The Intergenerational Transmission of Human Capital. The Role of Skills and Health," Working Papers 2012:22, Lund University, Department of Economics.
  10. repec:ese:iserwp:2013-24 is not listed on IDEAS
  11. Yuliia Stupnytska, 2014. "Explaining the U-Shape of the Referral Hiring Pattern in a Search Model with Heterogeneous Workers," Working Papers 511, Bielefeld University, Center for Mathematical Economics.
  12. Corneo, Giacomo, 2013. "Work norms, social insurance and the allocation of talent," Journal of Public Economics, Elsevier, vol. 107(C), pages 79-92.
  13. Corneo, Giacomo, 2013. "Work norms, social insurance and the allocation of talent," Discussion Papers 2013/12, Free University Berlin, School of Business & Economics.

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