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

  • 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)

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.

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File URL: http://hdl.handle.net/10.1002/jae.739
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File URL: http://qed.econ.queensu.ca:80/jae/2003-v18.5/
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 18 (2003)
Issue (Month): 5 ()
Pages: 545-562

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Handle: RePEc:jae:japmet:v:18:y:2003:i:5:p:545-562
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  1. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-42, April.
  2. Zvi Griliches & Jerry A. Hausman, 1984. "Errors in Variables in Panel Data," NBER Technical Working Papers 0037, National Bureau of Economic Research, Inc.
  3. Peter Gottschalk & John Fitzgerald & Robert Moffitt, 1997. "An Analysis of the Impact of Sample Attrition on the Second Generation of Respondents in the Michigan Panel Study of Income Dynamics," Boston College Working Papers in Economics 399, Boston College Department of Economics.
  4. 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.
  5. 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).
  6. 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.
  7. Michael Kremer, 1996. "How Much Does Sorting Increase Inequality?," NBER Working Papers 5566, National Bureau of Economic Research, Inc.
  8. Benabou, Roland, 1996. "Equity and Efficiency in Human Capital Investment: The Local Connection," Review of Economic Studies, Wiley Blackwell, vol. 63(2), pages 237-64, April.
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  13. Durlauf, S.N., 1992. "A Theory of Persistent Income Inequality," Papers 47, Stanford - Institute for Thoretical Economics.
  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. Gary Solon & Mary Corcoran & Roger H. Gordon & Deborah Laren, 1987. "Sibling and Intergenerational Correlations in Welfare Program Participation," NBER Working Papers 2334, National Bureau of Economic Research, Inc.
  16. 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.
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