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Persistence of inequality in Europe: the role of family economic conditions

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  • Maurizio Franzini
  • Michele Raitano

Abstract

In this article we analyse the intergenerational transmission of income inequality in 13 European countries on the basis of information provided by the European Union Statistics on Income and Living Conditions 2005 dataset. Improving on the literature dealing with the influence of family economic conditions on income earned in adult age by the offspring, we are able to estimate separately the effect operating through education and a direct economic effect. The latter, in some European countries, is of significant magnitude and seems to be related to the welfare regimes of the various countries. These findings highlight an additional characteristic of welfare regimes and allow a better understanding on how family conditions and institutions may interact in the process of inequality persistence across generations.

Suggested Citation

  • Maurizio Franzini & Michele Raitano, 2009. "Persistence of inequality in Europe: the role of family economic conditions," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(3), pages 345-366.
    • Handle: RePEc:taf:irapec:v:23:y:2009:i:3:p:345-366
    DOI: 10.1080/02692170902811777
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    References listed on IDEAS

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    1. Miles Corak, 2006. "Do Poor Children Become Poor Adults? Lessons from a Cross-Country Comparison of Generational Earnings Mobility," Research on Economic Inequality, in: Dynamics of Inequality and Poverty, pages 143-188, Emerald Group Publishing Limited.
    2. Stephen P. Jenkins & Thomas Siedler, 2007. "Using Household Panel Data to Understand the Intergenerational Transmission of Poverty," Discussion Papers of DIW Berlin 694, DIW Berlin, German Institute for Economic Research.
    3. Stephen P. Jenkins & Thomas Siedler, 2007. "The Intergeneratinal Transmission of Poverty in Industrialized Countries," Discussion Papers of DIW Berlin 693, DIW Berlin, German Institute for Economic Research.
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    Cited by:

    1. Antonella D’Agostino & Andrea Regoli, 2013. "Life Conditions and Opportunities of Young Adults: Evidence from Italy in European Comparative Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(3), pages 1205-1235, September.
    2. Antonio Di Paolo, 2012. "Parental Education And Family Characteristics: Educational Opportunities Across Cohorts In Italy And Spain," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 20(1), pages 119-146, Spring.
    3. 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.
    4. Gu, Xinhua & Tam, Pui Sun, 2013. "The saving–growth–inequality triangle in China," Economic Modelling, Elsevier, vol. 33(C), pages 850-857.
    5. Arntz, Melanie & Lipowski, Cäcilia & Neidhöfer, Guido & Zierahn, Ulrich, 2022. "Computers as stepping stones? Technological change and equality of labor market opportunities," ZEW Discussion Papers 22-014, ZEW - Leibniz Centre for European Economic Research.
    6. Naticchioni, Paolo & Raitano, Michele & Vittori, Claudia, 2014. "La Meglio Gioventù: Earnings Gaps across Generations and Skills in Italy," IZA Discussion Papers 8140, Institute of Labor Economics (IZA).
    7. Terhi Maczulskij, 2016. "Higher education and public sector employment: evidence from Finnish data on twins," International Review of Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 605-619, September.
    8. Maurizio Franzini & Fabrizio Patriarca & Michele Raitano, 2020. "Market competition and parental background wage premium: the role of human and relational capital," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(3), pages 291-317, September.
    9. Daniel Reiter & Mario Thomas Palz & Margareta Kreimer, 2020. "Intergenerational transmission of economic success in Austria with a focus on migration and gender," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-20, December.
    10. Jacopo Zotti & Rosita Pretaroli & Francesca Severini & Claudio Socci & Giancarlo Infantino, 2020. "Employment incentives and the disaggregated impact on the economy. The Italian case," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 993-1032, October.

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