The growing importance of family and community: an analysis of changes in the sibling correlation in earnings
This study presents evidence that the correlation in brothers’ earnings has risen in recent decades. We use two distinct cohorts of young men from the National Longitudinal Surveys and estimate that the correlation in earnings between brothers rose from 0.26 to 0.45. This suggests that family and community influences shared by siblings have become increasingly important in determining economic outcomes. We find that neither the correlation in years of schooling nor the rising return to schooling accounts for this increase. We also argue that the PSID is not an appropriate dataset for analyzing changes over time because of its sampling design, small sample of siblings, and high attrition rate.
|Date of creation:||2003|
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- Bhashkar Mazumder, 2002.
"Earnings Mobility in the US: A New Look at Intergenerational Inequality,"
02-11, Center for Economic Studies, U.S. Census Bureau.
- Bhashkar Mazumder, 2001. "Earnings mobility in the US: a new look at intergenerational inequality," Working Paper Series WP-01-18, Federal Reserve Bank of Chicago.
- Levy, Frank & Murnane, Richard J, 1992. "U.S. Earnings Levels and Earnings Inequality: A Review of Recent Trends and Proposed Explanations," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1333-81, September.
- Joseph G. Altonji & Thomas A. Dunn, 1991. "Relationships Among the Family Incomes and Labor Market Outcomes of Relatives," NBER Working Papers 3724, National Bureau of Economic Research, Inc.
- Susan E. Mayer & Leonard M. Lopoo, 2005.
"Has the Intergenerational Transmission of Economic Status Changed?,"
Journal of Human Resources,
University of Wisconsin Press, vol. 40(1).
- Susan E. Mayer & Leonard M. Lopoo, 2001. "Has the Intergenerational Transmission of Economic Status Changed?," Working Papers 0116, Harris School of Public Policy Studies, University of Chicago.
- Susan E. Mayer & Leonard M. Lopoo, 2004. "Has the Intergenerational Transmission of Economic Status Changed?," Working Papers 0414, Harris School of Public Policy Studies, University of Chicago.
- Susan E. Mayer & Leonard Michael Lopoo, 2001. "Has the Intergenerational Transmission of Economic Status Changed?," JCPR Working Papers 227, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Markus Jäntti & Eva Österbacka & Oddbjörn Raaum & Tor Eriksson & Anders Björklund, 2002.
"Brother correlations in earnings in Denmark, Finland, Norway and Sweden compared to the United States,"
Journal of Population Economics,
Springer, vol. 15(4), pages 757-772.
- Björklund, Anders & Eriksson, Tor & Jäntti, Markus & Raaum, Oddbjørn & Österbacka, Eva, 2000. "Brother Correlations in Earnings in Denmark, Finland, Norway and Sweden Compared to the United States," IZA Discussion Papers 158, Institute for the Study of Labor (IZA).
- David I. Levine & Bhashkar Mazumder, 2002. "Choosing the right parents: changes in the intergenerational transmission of inequality between 1980 and the early 1990s," Working Paper Series WP-02-08, Federal Reserve Bank of Chicago.
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