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Family Background and Economic Status in Finland

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  • Osterbacka, Eva

Abstract

The importance of family background for economic outcomes is analyzed, using a Finnish data set. The estimates for intergenerational and sibling correlations in earnings are comparatively low. By estimating the magnitude of family influence conditional on parental earnings, children with poor parents are found to have lower intergenerational elasticities, while the sibling resemblance is higher. Children with rich parents have higher intergenerational elasticities and the sibling resemblance is also higher, except for daughters. The results also indicate that the largest share of the intergenerational correlation is transmitted through observed characteristics, such as education and, in particular, occupation. Copyright 2001 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Osterbacka, Eva, 2001. " Family Background and Economic Status in Finland," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(3), pages 467-484, September.
  • Handle: RePEc:bla:scandj:v:103:y:2001:i:3:p:467-84
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    Cited by:

    1. Maia Güell & José V. Rodríguez Mora & Christopher I. Telmer, 2015. "The Informational Content of Surnames, the Evolution of Intergenerational Mobility, and Assortative Mating," Review of Economic Studies, Oxford University Press, vol. 82(2), pages 693-735.
    2. María Cervini-Plá, 2013. "Exploring the Sources of Earnings Transmission in Spain," Hacienda Pública Española, IEF, vol. 204(1), pages 45-66, March.
    3. Maia Güell & José V. Rodríguez Mora & Christopher I. Telmer, 2014. "Intergenerational Mobility and the Informational Content of Surnames," Working Papers 2014-01, FEDEA.
    4. Evangelia Papapetrou & Pinelopi Tsalaporta, 2017. "Is there a case for intergenerational transmission of female labour force participation and educational attainment? Evidence from Greece during the crisis," Working Papers 223, Bank of Greece.
    5. Arnaud Lefranc & Alain Trannoy, 2005. "Intergenerational earnings mobility in France: Is France more mobile than the U.S.?," Annals of Economics and Statistics, GENES, issue 78, pages 57-77.
    6. Javier Núñez E. & Leslie Miranda, 2007. "Recent Findings on Intergenerational Income and Educational Mobility in Chile," Working Papers wp244, University of Chile, Department of Economics.
    7. Guell, Maia & Rodriguez Mora, Jose V. & Telmer, Chris, 2007. "Intergenerational mobility and the informative content of surnames," LSE Research Online Documents on Economics 19701, London School of Economics and Political Science, LSE Library.
    8. María Cervini Plá, 2009. "Measuring intergenerational earnings mobility in Spain: A selection-bias-free," Working Papers wpdea0904, Department of Applied Economics at Universitat Autonoma of Barcelona.
    9. Sari Pekkala & Robert E. B. Lucas, 2004. "On the Importance of Finnishing School: Half a Century of Inter-Generational Economic Mobility in Finland," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-141, Boston University - Department of Economics.
    10. Grawe, Nathan D., 2003. "Life Cycle Bias in the Estimation of Intergenerational Earnings Persistence," Analytical Studies Branch Research Paper Series 2003207e, Statistics Canada, Analytical Studies Branch.
    11. 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.
    12. Honge Gong & Andrew Leigh & Xin Meng, 2012. "Intergenerational Income Mobility In Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(3), pages 481-503, September.
    13. Maribel Jiménez, 2011. "Un Análisis Empírico de las No Linealidades en la Movilidad Intergeneracional del Ingreso. El caso de la Argentina," CEDLAS, Working Papers 0114, CEDLAS, Universidad Nacional de La Plata.
    14. Raaum Oddbjørn & Bratsberg Bernt & Røed Knut & Österbacka Eva & Eriksson Tor & Jäntti Markus & Naylor Robin A, 2008. "Marital Sorting, Household Labor Supply, and Intergenerational Earnings Mobility across Countries," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-49, January.
    15. T. M. Tonmoy Islam & Shabana Mitra, 2017. "Multidimensional Human Opportunity Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(2), pages 523-535, January.
    16. Nguyen, Anh & Getinet, Haile, 2003. "Intergenerational mobility in educational and occupational status: evidence from the U.S," MPRA Paper 1383, University Library of Munich, Germany.
    17. Haile, Getinet Astatike, 2016. "Intergenerational Mobility in Income and Economic Status in Ethiopia," IZA Discussion Papers 10047, Institute for the Study of Labor (IZA).
    18. repec:bla:revinw:v:63:y:2017:i:2:p:219-233 is not listed on IDEAS
    19. Mattila-Wiro, Päivi, 2006. "Changes in the Distribution of Economic Wellbeing in Finland," Research Reports 128, VATT Institute for Economic Research.
    20. Bevis, Leah E.M. & Barrett, Christopher B., 2015. "Decomposing Intergenerational Income Elasticity: The Gender-differentiated Contribution of Capital Transmission in Rural Philippines," World Development, Elsevier, vol. 74(C), pages 233-252.

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