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Dynastic human capital, inequality and intergenerational mobility

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  • Adrian Adermon
  • Mikael Lindahl
  • Marten Palme

Abstract

We study the importance of the extended family – the dynasty – for the persistence in inequality across generations. We use data including the entire Swedish population, linking four generations. This data structure enables us to identify parents’ siblings and cousins, their spouses, and the spouses’ siblings. Using various human capital measures, we show that traditional parent-child estimates of intergenerational persistence miss almost one-third of the persistence found at the dynasty level. To assess the importance of genetic links, we use a sample of adoptees. We then find that the importance of the extended family relative to the parents increases.

Suggested Citation

  • Adrian Adermon & Mikael Lindahl & Marten Palme, 2019. "Dynastic human capital, inequality and intergenerational mobility," CESifo Working Paper Series 7615, CESifo.
  • Handle: RePEc:ces:ceswps:_7615
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    More about this item

    Keywords

    intergenerational mobility; extended family; dynasty; human capital;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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