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.
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- Susan E. Mayer & Leonard M. Lopoo, 2004.
"Has the Intergenerational Transmission of Economic Status Changed?,"
0414, Harris School of Public Policy Studies, University of Chicago.
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- 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.
- 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.
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Working Paper Series
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- 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;European Society for Population Economics, vol. 15(4), pages 757-772.
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