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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.

Suggested Citation

  • 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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    File URL: http://hdl.handle.net/10.1111/manc.12064
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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. 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.
    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. Michele Raitano & Claudia Vittori & Francesco Vona, 2016. "The effect of parental background along the sons’ earnings distribution: does one pattern fit for all?," Applied Economics Letters, Taylor & Francis Journals, vol. 23(15), pages 1073-1078, October.
    4. Pastore, Francesco, 2017. "Why So Slow? The School-to-Work Transition in Italy," IZA Discussion Papers 10767, Institute for the Study of Labor (IZA).

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