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

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  • 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.
  • Handle: RePEc:ces:ceswps:_6743
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    References listed on IDEAS

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    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

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    Cited by:

    1. Marco Bertoni & Giorgio Brunello & Lorenzo Cappellari, 2020. "Who benefits from privileged peers? Evidence from siblings in schools," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 35(7), pages 893-916, November.
    2. Jan Stuhler, 2018. "A Review of Intergenerational Mobility and its Drivers," JRC Research Reports JRC112247, Joint Research Centre.

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    More about this item

    Keywords

    sibling correlation; neighborhoods; schools; long-term inequality;
    All these keywords.

    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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