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Family, Community and Life-Cycle Earnings: Evidence from Siblings and Youth Peers

Author

Listed:
  • Paul Bingley
  • Lorenzo Cappellari
  • Konstantinos Tatsiramos

Abstract

Using longitudinal data based on administrative registers for the population of Danish men we develop a model which accounts for the joint earnings dynamics of siblings and youth community peers. We are the first to decompose the sibling correlation of permanent earnings into family and community effects allowing for life-cycle dynamics; finding that family is the most important factor influencing earnings inequality over the life cycle. Community background explains a substantial share of the sibling correlation of earnings early in the working life, but its importance diminishes over time and becomes negligible after age 30.

Suggested Citation

  • Paul Bingley & Lorenzo Cappellari & Konstantinos Tatsiramos, 2017. "Family, Community and Life-Cycle Earnings: Evidence from Siblings and Youth Peers," CESifo Working Paper Series 6743, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_6743
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp6743.pdf
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    References listed on IDEAS

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    1. Rasmus Landersø & James J. Heckman, 2017. "The Scandinavian Fantasy: The Sources of Intergenerational Mobility in Denmark and the US," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(1), pages 178-230, January.
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    17. repec:hrv:faseco:30367426 is not listed on IDEAS
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Family, Community and Life-Cycle Earnings: Evidence from Siblings and Youth Peers
      by maximorossi in NEP-LTV blog on 2018-03-06 13:02:57

    More about this item

    Keywords

    sibling correlation; neighborhoods; schools; long-term inequality;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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