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Three-generation Mobility in the United States, 1850-1940: The Role of Maternal and Paternal Grandparents

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  • Claudia Olivetti
  • M. Daniele Paserman
  • Laura Salisbury

Abstract

This paper estimates intergenerational elasticities across three generations in the United States in the late 19th and early 20th centuries. We extend the methodology in Olivetti and Paserman (2015) to explore the role of maternal and paternal grandfathers for the transmission of economic status to grandsons and granddaughters. We document three main findings. First, grandfathers matter for income transmission, above and beyond their effect on fathers' income. Second, the socio-economic status of grandsons is influenced more strongly by paternal grandfathers than by maternal grandfathers. Third, maternal grandfathers are more important for granddaughters than for grandsons, while the opposite is true for paternal grandfathers. We present a model of multi-trait matching and inheritance that can rationalize these findings.

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  • Claudia Olivetti & M. Daniele Paserman & Laura Salisbury, 2016. "Three-generation Mobility in the United States, 1850-1940: The Role of Maternal and Paternal Grandparents," NBER Working Papers 22094, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:22094
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    2. Eiji Yamamura, 2021. "View about consumption tax and grandchildren," Papers 2102.04658, arXiv.org.
    3. Adrian Adermon & Mikael Lindahl & Daniel Waldenström, 2018. "Intergenerational Wealth Mobility and the Role of Inheritance: Evidence from Multiple Generations," Economic Journal, Royal Economic Society, vol. 128(612), pages 482-513, July.
    4. Shelly Lundberg & Aloysius Siow, 2017. "Canadian contributions to family economics," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1304-1323, December.
    5. Inwood, Kris & Minns, Chris & Summerfield, Fraser, 2019. "Occupational income scores and immigrant assimilation. Evidence from the Canadian census," Explorations in Economic History, Elsevier, vol. 72(C), pages 114-122.
    6. Samuel Bazzi & Martin Fiszbein & Mesay Gebresilasse, 2020. "Frontier Culture: The Roots and Persistence of “Rugged Individualism” in the United States," Econometrica, Econometric Society, vol. 88(6), pages 2329-2368, November.
    7. Andra C. Ghent & Marianna Kudlyak, 2015. "Intergenerational Linkages in Household Credit," Working Paper 15-14, Federal Reserve Bank of Richmond.
    8. Martin Nybom & Jan Stuhler, 2019. "Steady-state assumptions in intergenerational mobility research," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(1), pages 77-97, March.
    9. Alberto Alesina & Sebastian Hohmann & Stelios Michalopoulos & Elias Papaioannou, 2021. "Intergenerational Mobility in Africa," Econometrica, Econometric Society, vol. 89(1), pages 1-35, January.
    10. John Komlos, 2016. "Unemployment in a Just Economy," CESifo Working Paper Series 5974, CESifo.
    11. Yu-Wei Luke Chu & Ming-Jen Lin, 2020. "Intergenerational earnings mobility in Taiwan: 1990–2010," Empirical Economics, Springer, vol. 59(1), pages 11-45, July.
    12. Kelly Vosters & Jørgen Modalsli, 2019. "Spillover bias in multigenerational income regressions," Discussion Papers 897, Statistics Norway, Research Department.
    13. Ran Abramitzky & Leah Platt Boustan & Elisa Jácome & Santiago Pérez, 2019. "Intergenerational Mobility of Immigrants in the US over Two Centuries," NBER Working Papers 26408, National Bureau of Economic Research, Inc.
    14. Chu, Luke Yu-Wei & Lin, Ming-Jen, 2016. "Economic development and intergenerational earnings mobility: Evidence from Taiwan," Working Paper Series 19495, Victoria University of Wellington, School of Economics and Finance.
    15. Anke Becker, 2019. "On the Economic Origins of Restrictions on Women's Sexuality," CESifo Working Paper Series 7770, CESifo.
    16. Teresa Barbieri & Francesco Bloise & Michele Raitano, 2020. "Intergenerational Earnings Inequality: New Evidence From Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(2), pages 418-443, June.
    17. Ian Lundberg, 2020. "Does Opportunity Skip Generations? Reassessing Evidence From Sibling and Cousin Correlations," Demography, Springer;Population Association of America (PAA), vol. 57(4), pages 1193-1213, August.
    18. Javier Cortes Orihuela & Juan D. Díaz & Pablo Gutiérrez Cubillos & Pablo A. Troncoso, 2024. "Everything’s not lost: revisiting TSTSLS estimates of intergenerational mobility in developing countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(1), pages 66-94, February.

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    More about this item

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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