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Dynastic human capital, inequality and intergenerational mobility

Author

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  • Adermon, Adrian

    () (IFAU - Institute for Evaluation of Labour Market and Education Policy)

  • Lindahl, Mikael

    () (Department of Economics, University of Gothenburg; IFAU; IZA; UCLS; CESifo)

  • Palme, Mårten

    () (Department of economics, Stockholm University; IZA)

Abstract

We study the importance of the extended family – or the dynasty – for the persistence in human capital inequality across generations. We use data including the entire Swedish population, linking four generations. This data structure enables us to – in addition to parents, grandparents and great grandparents – identify parents’ siblings and cousins, as well as their spouses, and the spouses’ siblings. We introduce and estimate a new parameter, which we call the intergenerational transmission of dynastic inequality. This parameter measures the between-dynasty variation in intergenerational transmission of human capital. We use three different measures of human capital: years of schooling, family income and an index of occupational status. Our results show that traditional parent-child estimates miss about half of the persistence across generations estimated by the extended model.

Suggested Citation

  • Adermon, Adrian & Lindahl, Mikael & Palme, Mårten, 2016. "Dynastic human capital, inequality and intergenerational mobility," Working Paper Series 2016:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2016_019
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    References listed on IDEAS

    as
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Dynastic human capital, inequality and intergenerational mobility
      by maximorossi in NEP-LTV blog on 2017-03-22 23:23:48

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    1. repec:eee:deveco:v:134:y:2018:i:c:p:329-349 is not listed on IDEAS
    2. Adermon, Adrian & Lindahl, Mikael & Waldenström, Daniel, 2016. "Intergenerational Wealth Mobility and the Role of Inheritance: Evidence from Multiple Generations," IZA Discussion Papers 10126, Institute for the Study of Labor (IZA).
    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).

    More about this item

    Keywords

    intergenerational mobility; extended family; dynasty; human capital;

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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