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Intergenerational Correlations in Labor Market Status: A Comparison of the United States and Germany

  • Kenneth A. Couch
  • Thomas A. Dunn

We use data from the Panel Study of Income Dynamics and the German Socio-economic Panel to calculate comparable measures of intergenerational correlations of earnings, hours, and education in the United States and in Germany. Our results indicate that there is remarkable similarity across the two countries in the correlations of earnings and of annual work hours of fathers and sons. The corresponding correlations for daughters and mothers are stronger in the United States than Germany, most likely due to the greater labor market integration of women in the United States. We also find that intergenerational correlations in educational attainment are considerably stronger in the United States.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.471287.de/dp111.pdf
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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 111.

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Length: 18 p.
Date of creation: 1995
Date of revision:
Handle: RePEc:diw:diwwpp:dp111
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  1. Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S1-39, July.
  2. Peters, H Elizabeth, 1992. "Patterns of Intergenerational Mobility in Income and Earnings," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 456-66, August.
  3. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
  4. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-29, June.
  5. Solon, Gary, 1989. "Biases in the Estimation of Intergenerational Earnings Correlations," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 172-74, February.
  6. Katharine G. Abraham & Susan N. Houseman, 1993. "Job Security in America: Lessons from Germany," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number kagsnh1993, March.
  7. Behrman, Jere & Tarbman, Paul, 1985. "Intergenerational Earnings Mobility in the United States: Some Estimates and a Test of Becker's Intergenerational Endowments Model," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 144-51, February.
  8. Joseph G. Altonji & Thomas A. Dunn, 1994. "An Intergenerational Model of Wages, Hours and Earnings," NBER Working Papers 4950, National Bureau of Economic Research, Inc.
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