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Correlations between sisters and neighbouring girls in their subsequent income as adults

Author

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  • Marianne E. Page

    (Department of Economics, University of California at Davis, Davis, CA 95616, USA)

  • Gary Solon

    (Department of Economics, University of Michigan, Ann Arbor, MI 48109, USA)

Abstract

This study uses data on sisters and neighbouring girls in the Panel Study of Income Dynamics to estimate sister and neighbour correlations in adult income. Our results suggest that the income resemblance between sisters stems more from growing up in the same family than from growing up in the same neighbourhood. We also find that much of the neighbour correlation is explicable in terms of the large income differential between urban and non-urban areas combined with the strength with which urbanicity of childhood neighbourhood predicts urbanicity of adult location. This pattern is subject to a variety of interpretations, but it is quite different from the usual view of neighbourhood effects. Copyright © 2003 John Wiley & Sons, Ltd.

Suggested Citation

  • Marianne E. Page & Gary Solon, 2003. "Correlations between sisters and neighbouring girls in their subsequent income as adults," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(5), pages 545-562.
  • Handle: RePEc:jae:japmet:v:18:y:2003:i:5:p:545-562
    DOI: 10.1002/jae.739
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    File URL: http://qed.econ.queensu.ca:80/jae/2003-v18.5/
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    References listed on IDEAS

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    1. O'Connell, Philip J. & Russell, Helen & FitzGerald, John, 2006. "Human Resources," Book Chapters,in: Morgenroth, Edgar (ed.), Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013 Economic and Social Research Institute (ESRI).
    2. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800 Elsevier.
    3. Kunz, Jim & Page, Marianne E. & Solon, Gary, 2003. "Are point-in-time measures of neighborhood characteristics useful proxies for children's long-run neighborhood environment?," Economics Letters, Elsevier, vol. 79(2), pages 231-237, May.
    4. Gary Solon & Mary Corcoran & Roger Gordon & Deborah Laren, 1988. "Sibling and Intergenerational Correlations in Welfare Program Participation," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 388-396.
    5. Joseph G. Altonji & Thomas A. Dunn, 1991. "Relationships Among the Family Incomes and Labor Market Outcomes of Relatives," NBER Working Papers 3724, National Bureau of Economic Research, Inc.
    6. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February.
    7. Durlauf, Steven N, 1996. "A Theory of Persistent Income Inequality," Journal of Economic Growth, Springer, vol. 1(1), pages 75-93, March.
    8. Gary Solon & Marianne E. Page & Greg J. Duncan, 2000. "Correlations Between Neighboring Children In Their Subsequent Educational Attainment," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 383-392, August.
    9. 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.
    10. John Fitzgerald & Peter Gottschalk & Robert Moffitt, 1998. "An Analysis of the Impact of Sample Attrition on the Second Generation of Respondents in the Michigan Panel Study of Income Dynamics," Journal of Human Resources, University of Wisconsin Press, vol. 33(2), pages 300-344.
    11. Mary Corcoran & Roger Gordon & Deborah Laren & Gary Solon, 1992. "The Association between Men's Economic Status and Their Family and Community Origins," Journal of Human Resources, University of Wisconsin Press, vol. 27(4), pages 575-601.
    12. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-342, April.
    13. Marianne E. Page & Gary Solon, 2003. "Correlations between Brothers and Neighboring Boys in Their Adult Earnings: The Importance of Being Urban," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 831-856, October.
    14. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
    15. Roland Bénabou, 1996. "Equity and Efficiency in Human Capital Investment: The Local Connection," Review of Economic Studies, Oxford University Press, vol. 63(2), pages 237-264.
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    Cited by:

    1. Doan, Quang Hung & Nguyen, Ngoc Anh, 2016. "Intergenerational Income Mobility in Vietnam," MPRA Paper 70603, University Library of Munich, Germany.
    2. Lindquist, Matthew J. & Sol, Joeri & van Praag, Mirjam C. & Vladasel, Theodor, 2016. "On the Origins of Entrepreneurship: Evidence from Sibling Correlations," IZA Discussion Papers 10278, Institute for the Study of Labor (IZA).
    3. Morrissey, Taryn W. & Oellerich, Don & Meade, Erica & Simms, Jeffrey & Stock, Ann, 2016. "Neighborhood poverty and children's food insecurity," Children and Youth Services Review, Elsevier, vol. 66(C), pages 85-93.
    4. Yana Kucheva, 2014. "The Receipt of Subsidized Housing across Generations," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 33(6), pages 841-871, December.
    5. Jeffrey R. Kling & Jeffrey B. Liebman & Lawrence F. Katz & Lisa Sanbonmatsu, 2004. "Moving to Opportuntiy and Tranquility: Neighborhood Effects on Adult Economic Self-sufficiency and Health from a Randomized Housing Voucher Experiment," Working Papers 247, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
    6. Björklund, Anders & Lindahl, Lena & Lindquist, Matthew J., 2008. "What More Than Parental Income? An Exploration of What Swedish Siblings Get from Their Parents," IZA Discussion Papers 3735, Institute for the Study of Labor (IZA).
    7. Cheti Nicoletti & Marco Francesconi, 2006. "Intergenerational mobility and sample selection in short panels," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(8), pages 1265-1293.
    8. Björklund, Anders & Jäntti, Markus, 2012. "How important is family background for labor-economic outcomes?," Labour Economics, Elsevier, vol. 19(4), pages 465-474.
    9. Islam, TM Tonmoy, 2013. "Childhood neighborhood conditions and the persistence of adult income," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 684-693.

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