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The intergenerational transmission of cognitive and non-cognitive abilities

  • Grönqvist, Erik

    ()

    (IFAU - Institute for Labour Market Policy Evaluation)

  • Öckert, Björn

    ()

    (FAU - Institute for Labour Market Policy Evaluation)

  • Vlachos, Jonas

    ()

    (Department of Economics, Stockholm University)

We study the intergenerational transmission of cognitive and non-cognitive abilities between parents and sons using population-wide enlistment data. Conscripts are eva-luated at the same age and with comparable methods across cohorts, and we correct for measurement error bias in fathers’ ability measures by using their brothers’ abilities as instruments. The “uncle instrument” is supported by a host of validity tests. This strat-egy also enables us to predict mothers’ abilities. Our results suggest that previous esti-mates of intergenerational ability correlations are biased downwards; in particular for non-cognitive skills. When this bias is corrected for the non-cognitive correlation is close to that of cognitive abilities. Using predicted abilities, we further find the mother-son cognitive ability correlation to be stronger than the father-son correlation. Finally, educational attainment and labor market outcomes of both sons and daughters are found to be strongly related to both parents’ cognitive and non-cognitive abilities.

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Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2010:12.

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Length: 44 pages
Date of creation: 11 Nov 2010
Date of revision:
Handle: RePEc:hhs:ifauwp:2010_012
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  1. Black, Sandra E. & Devereux, Paul J., 2010. "Recent Developments in Intergenerational Mobility," IZA Discussion Papers 4866, Institute for the Study of Labor (IZA).
  2. Jo Blanden & Paul Gregg & Lindsey Macmillan, 2006. "Accounting for intergenerational income persistence: non-cognitive skills, ability and education," LSE Research Online Documents on Economics 19401, London School of Economics and Political Science, LSE Library.
  3. Melissa Osborne & Herbert Gintis & Samuel Bowles, 2001. "The Determinants of Earnings: A Behavioral Approach," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1137-1176, December.
  4. Anger, Silke & Heineck, Guido, 2010. "Do Smart Parents Raise Smart Children? The Intergenerational Transmission of Cognitive Abilities," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 1105-1132.
  5. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, 05.
  6. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
  7. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2008. "The Intergenerational Transmission of Risk and Trust Attitudes," CESifo Working Paper Series 2307, CESifo Group Munich.
  8. Gerrit Mueller & Erik Plug, 2006. "Estimating the effect of personality on male and female earnings," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 60(1), pages 3-22, October.
  9. Black, Sandra E. & Devereux, Paul J. & Salvanes, Kjell G., 2007. "Older and Wiser? Birth Order and IQ of Young Men," IZA Discussion Papers 3007, Institute for the Study of Labor (IZA).
  10. Carneiro, Pedro & Heckman, James J., 2003. "Human Capital Policy," IZA Discussion Papers 821, Institute for the Study of Labor (IZA).
  11. Anders Björklund & Mikael Lindahl & Erik Plug, 2006. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data," The Quarterly Journal of Economics, MIT Press, vol. 121(3), pages 999-1028, 08.
  12. Brown, Sarah & McHardy, Jolian & Taylor, Karl, 2011. "Intergenerational Analysis of Social Interaction," IZA Discussion Papers 5621, Institute for the Study of Labor (IZA).
  13. Wilhelm, Mark Ottoni & Brown, Eleanor & Rooney, Patrick M. & Steinberg, Richard, 2008. "The intergenerational transmission of generosity," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2146-2156, October.
  14. Lindqvist, Erik & Westman, Roine, 2009. "The Labor Market Returns to Cognitive and Noncognitive Ability: Evidence from the Swedish Enlistment," Working Paper Series 794, Research Institute of Industrial Economics.
  15. Black, Sandra E. & Devereux, Paul J. & Salvanes, Kjell G., 2008. "Like Father, Like Son? A Note on the Intergenerational Transmission of IQ Scores," IZA Discussion Papers 3651, Institute for the Study of Labor (IZA).
  16. Ashenfelter, Orley & Krueger, Alan B, 1994. "Estimates of the Economic Returns to Schooling from a New Sample of Twins," American Economic Review, American Economic Association, vol. 84(5), pages 1157-73, December.
  17. Björklund Anders & Lindahl Lena & Lindquist Matthew J., 2010. "What More Than Parental Income, Education and Occupation? An Exploration of What Swedish Siblings Get from Their Parents," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-40, November.
  18. Björklund, Anders & Hederos Eriksson, Karin & Jäntti, Markus, 2009. "IQ and Family Background: Are Associations Strong or Weak?," IZA Discussion Papers 4305, Institute for the Study of Labor (IZA).
  19. Nyhus, Ellen K. & Pons, Empar, 2005. "The effects of personality on earnings," Journal of Economic Psychology, Elsevier, vol. 26(3), pages 363-384, June.
  20. Holmlund, Helena & Silva, Olmo, 2009. "Targeting Non-Cognitive Skills to Improve Cognitive Outcomes: Evidence from a Remedial Education Intervention," IZA Discussion Papers 4476, Institute for the Study of Labor (IZA).
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