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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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  • Schnitzlein, Daniel D.

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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Bibliographic Info

Paper provided by Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW) in its series IWQW Discussion Paper Series with number 05/2011.

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Date of creation: 2011
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Handle: RePEc:zbw:iwqwdp:052011

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Web page: http://www.iwqw.rw.uni-erlangen.de/
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Keywords: Sibling correlations; Intergenerational mobility; Inequality; REML;

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References

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  1. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2012. "The Intergenerational Transmission of Risk and Trust Attitudes," Review of Economic Studies, Oxford University Press, vol. 79(2), pages 645-677.
  2. Schnitzlein, Daniel D., 2011. "How important is cultural background for the level of intergenerational mobility?," IWQW Discussion Paper Series 06/2011, Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW).
  3. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Jürgen Schupp & Gert G. Wagner, 2011. "Individual Risk Attitudes: Measurement, Determinants, And Behavioral Consequences," Journal of the European Economic Association, European Economic Association, European Economic Association, vol. 9(3), pages 522-550, 06.
  4. Björklund Anders & Lindahl Lena & Lindquist Matthew J., 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, De Gruyter, De Gruyter, vol. 10(1), pages 1-40, November.
  5. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," American Economic Review, American Economic Association, American Economic Association, vol. 96(4), pages 1308-1320, September.
  6. Yuksel, Mutlu, 2009. "Intergenerational Mobility of Immigrants in Germany: Moving with Natives or Stuck in their Neighborhoods?," IZA Discussion Papers 4677, Institute for the Study of Labor (IZA).
  7. 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.
  8. Thorsten Vogel, 2006. "Reassessing Intergenerational Mobility in Germany and the United States: The Impact of Differences in Lifecycle Earnings Patterns," SFB 649 Discussion Papers SFB649DP2006-055, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
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  13. Gary Solon & Mary Corcoran & GRoger Gordon & Deborah Laren, 1991. "A Longitudinal Analysis of Sibling Correlations in Economic Status," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 509-534.
  14. Simona Comi, 2009. "Family influence on early career outcomes in seven European countries," DISCE - Quaderni dell'Istituto di Economia dell'Impresa e del Lavoro, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) ieil0055, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
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Blog mentions

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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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Cited by:
  1. Jäntti, Markus & Jenkins, Stephen P., 2013. "Income Mobility," IZA Discussion Papers 7730, Institute for the Study of Labor (IZA).
  2. Schnitzlein, Daniel D., 2011. "How important is cultural background for the level of intergenerational mobility?," IWQW Discussion Paper Series 06/2011, Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW).
  3. Biavaschi, Costanza & Giulietti, Corrado & Zimmermann, Klaus F., 2013. "Sibling Influence on the Human Capital of the Left Behind," IZA Discussion Papers 7859, Institute for the Study of Labor (IZA).
  4. repec:ese:iserwp:2013-23 is not listed on IDEAS
  5. Björklund, Anders & Jäntti, Markus, 2012. "How important is family background for labor-economic outcomes?," Labour Economics, Elsevier, Elsevier, vol. 19(4), pages 465-474.

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