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How Important Is the Family? Evidence from Sibling Correlations in Permanent Earnings in the USA, Germany, and Denmark

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  • Schnitzlein, Daniel D.

Abstract

This paper is the first to analyze the impact of family background on permanent earnings based on sibling correlations in Germany and to provide a cross-country comparison of Germany, Denmark, and USA. The main findings are that family and community background has a stronger influence on permanent earnings in Germany than in Denmark, and a comparable influence is found in USA. This holds true for both male and female siblings. A deeper analysis of Germany shows that family background also plays an important role in explaining variations in family income, wages, education, and risk attitudes.

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  • Schnitzlein, Daniel D., 2014. "How Important Is the Family? Evidence from Sibling Correlations in Permanent Earnings in the USA, Germany, and Denmark," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 69-89.
  • Handle: RePEc:zbw:espost:106945
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    Cited by:

    1. Ainhoa Aparicio-Fenoll & Veruska Oppedisano, 2016. "Should I stay or should I go? Sibling effects in household formation," Review of Economics of the Household, Springer, vol. 14(4), pages 1007-1027, December.
    2. Bredtmann, Julia & Smith, Nina, 2015. "Inequalities in Educational Outcomes: How Important is the Family?," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112861, Verein für Socialpolitik / German Economic Association.
    3. Mäder Miriam & Schwientek Caroline & Riphahn Regina T. & Müller Steffen, 2015. "Intergenerational Transmission of Unemployment – Evidence for German Sons," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(4-5), pages 355-375, August.
    4. Silke Anger & Daniel D. Schnitzlein, 2017. "Cognitive skills, non-cognitive skills, and family background: evidence from sibling correlations," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(2), pages 591-620, April.
    5. Schnitzlein, Daniel D. & Wunder, Christoph, 2016. "Are We Architects of Our Own Happiness? The Importance of Family Background for Well-Being," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 125-149.
    6. Schnitzlein Daniel D. & Wunder Christoph, 2016. "Are We Architects of Our Own Happiness? The Importance of Family Background for Well-Being," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(1), pages 125-149, January.
    7. Eschelbach Martina, 2015. "Family Background and Educational Attainment – Are there Birth Order Effects in Germany?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(1), pages 41-60, February.
    8. 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).
    9. Jantti, Markus & Jenkins, Stephen P., 2013. "Income mobility," ISER Working Paper Series 2013-23, Institute for Social and Economic Research.
    10. Anger, Silke & Schnitzlein, Daniel D., 2013. "Like Brother, Like Sister? The Importance of Family Background for Cognitive and Non-Cognitive Skills," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80052, Verein für Socialpolitik / German Economic Association.
    11. René Böheim & Christina Judmayr, 2014. "Bildungs- und Einkommenskorrelationen von Geschwistern in Österreich," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 40(4), pages 531-557.
    12. Costanza Biavaschi & Corrado Giulietti & Klaus F. Zimmermann, 2015. "Sibling Influence on the Human Capital of the Left-Behind," Journal of Human Capital, University of Chicago Press, vol. 9(4), pages 403-438.
    13. Halliday, Timothy J. & Mazumder, Bhashkar, 2014. "An Analysis of Sibling Correlations in Health Using Latent Variable Models," IZA Discussion Papers 8672, Institute for the Study of Labor (IZA).
    14. René Böheim & Christina Judmayr, 2014. "Chancengleichheit in Österreich," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 134, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    15. Schnitzlein, Daniel D., 2012. "How important is cultural background for the level of intergenerational mobility?," Economics Letters, Elsevier, vol. 114(3), pages 335-337.
    16. repec:bla:revinw:v:62:y:2016:i:4:p:650-667 is not listed on IDEAS
    17. Eschelbach Martina, 2015. "Family Culture and Fertility Outcomes – Evidence from American Siblings," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(3), pages 246-267, June.
    18. Elisabeth Bügelmayer & Daniel D. Schnitzlein, 2014. "Is It the Family or the Neighborhood?: Evidence from Sibling and Neighbor Correlations in Youth Education and Health," SOEPpapers on Multidisciplinary Panel Data Research 716, DIW Berlin, The German Socio-Economic Panel (SOEP).
    19. Björklund, Anders & Jäntti, Markus, 2012. "How important is family background for labor-economic outcomes?," Labour Economics, Elsevier, vol. 19(4), pages 465-474.
    20. Jakobsen, Kristian Thor & Kaarsen, Nicolai & Vasiljeva, Kristine, 2016. "Does reduced cash beneit worsen educational outcomes of refugee children?," MPRA Paper 72008, University Library of Munich, Germany.
    21. Timothy Halliday & Bhashkar Mazumder, 2014. "A Bayesian Analysis of Sibling Correlations in Health," Working Papers 201426, University of Hawaii at Manoa, Department of Economics.
    22. repec:spr:sochwe:v:49:y:2017:i:3:d:10.1007_s00355-017-1076-2 is not listed on IDEAS

    More about this item

    Keywords

    Sibling correlations; Intergenerational mobility; REML; Germany; SOEP;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D3 - Microeconomics - - Distribution
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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