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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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    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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