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Dynastic Human Capital, Inequality and Intergenerational Mobility

Author

Listed:
  • Adermon, Adrian

    (Institute for Evaluation of Labor Market and Education Policy (IFAU), UCLS and UCFS)

  • Lindahl, Mikael

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Palme, Mårten

    (Department of Economics, Stockholm University and IZA)

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

  • Adermon, Adrian & Lindahl, Mikael & Palme, Mårten, 2019. "Dynastic Human Capital, Inequality and Intergenerational Mobility," Working Papers in Economics 758, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0758
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    File URL: http://hdl.handle.net/2077/60060
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    References listed on IDEAS

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    1. repec:eee:deveco:v:134:y:2018:i:c:p:329-349 is not listed on IDEAS
    2. Adrian Adermon & Mikael Lindahl & Daniel Waldenström, 2018. "Intergenerational Wealth Mobility and the Role of Inheritance: Evidence from Multiple Generations," Economic Journal, Royal Economic Society, vol. 128(612), pages 482-513, July.
    3. Neidhöfer, Guido & Serrano, Joaquín & Gasparini, Leonardo, 2018. "Educational inequality and intergenerational mobility in Latin America: A new database," Journal of Development Economics, Elsevier, vol. 134(C), pages 329-349.
    4. Jan Stuhler, 2018. "A Review of Intergenerational Mobility and its Drivers," JRC Working Papers JRC112247, Joint Research Centre (Seville site).
    5. Maria Knoth Humlum & Anne Brink Nandrup & Nina Smith, 2019. "Closing or reproducing the gender gap? Parental transmission, social norms and education choice," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(2), pages 455-500, April.

    More about this item

    Keywords

    Intergenerational mobility; extended family; dynasty; human capital;

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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