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Direct and Indirect Influences of Parental Background on Children's Earnings: a Comparison across Countries and Genders

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  • Michele Raitano
  • Francesco Vona

Abstract

type="main"> The association between parental occupation and children's earnings in eight EU countries is compared using the European Union Survey on Income and Living Conditions (EU-SILC) data set, analysing: (i) residual background correlations (RBCs) on earnings, controlling for children's education and occupation, and (ii) patterns by gender, controlling for selection into employment. Findings on cross-country differences confirm well-known differences in intergenerational income inequality. RBCs are statistically significant irrespective of gender in the UK, Spain and Italy, for men in France and Ireland, for women in Denmark and not significant in Germany and Finland. Not controlling for selection delivers downward biased estimates of RBCs, highlighting the effect of family background on employability.

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  • Michele Raitano & Francesco Vona, 2015. "Direct and Indirect Influences of Parental Background on Children's Earnings: a Comparison across Countries and Genders," Manchester School, University of Manchester, vol. 83(4), pages 423-450, July.
  • Handle: RePEc:bla:manchs:v:83:y:2015:i:4:p:423-450
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    1. Diseguaglianza: si tramanda di padre in figlio
      by Lavoce.info in Il Fatto Quotidiano on 2015-11-10 20:18:30
    2. Di padre in figlio: così si tramanda la diseguaglianza
      by Maria De Paola in La Voce on 2015-11-10 14:19:44

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    Cited by:

    1. Michele Raitano & Francesco Vona & Claudia Vittori, 2015. "The effect of parental background along the son's earnings distribution : does one model fit for all?," Working Papers hal-03459749, HAL.
    2. Michele Raitano & Francesco Vona, 2015. "Measuring the link between intergenerational occupational mobility and earnings: evidence from eight European countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(1), pages 83-102, March.
    3. Ashok Thomas & Luca Spataro, 2015. "Financial Literacy, Human Capital and Stock Market Participation in Europe: An Empirical Exercise under Endogenous Framework," Discussion Papers 2015/194, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    4. Pastore, Francesco, 2017. "Why So Slow? The School-to-Work Transition in Italy," IZA Discussion Papers 10767, Institute of Labor Economics (IZA).
    5. repec:hal:spmain:info:hdl:2441/4rs0hmrl0s8farskm2usmmbu0s is not listed on IDEAS
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    7. Bonacini, Luca & Gallo, Giovanni & Scicchitano, Sergio, 2021. "Sometimes you cannot make it on your own. How household background influences chances of success in Italy," GLO Discussion Paper Series 832, Global Labor Organization (GLO).
    8. Zotti, Roberto, 2020. "Parental Education and Sons’ Earnings: A “Beyond the Mean†Approach along the Sons’ Earnings Distributions," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202013, University of Turin.
    9. Silvia Avram & Olga Canto, 2016. "Labour outcomes and family background: Evidence from the EU during the recession," Working Papers 414, ECINEQ, Society for the Study of Economic Inequality.
    10. Ada Ferrer-i-carbonell & X. Ramos & M. Oviedo, 2013. "GINI Country Report: Growing Inequalities and their Impacts in Spain," GINI Country Reports spain, AIAS, Amsterdam Institute for Advanced Labour Studies.
    11. Inmaculada García-Mainar & Víctor M. Montuenga, 2020. "Occupational Prestige and Fathers’ Influence on Sons and Daughters," Journal of Family and Economic Issues, Springer, vol. 41(4), pages 706-728, December.

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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