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Long-term intergenerational persistence of human capital: an empirical analysis of four generations

Author

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  • Lindahl, Mikael

    () (Uppsala University, CESifo, IFAU, IZA and UCLS)

  • Palme, Mårten

    () (Dept. of Economics, Stockholm University)

  • Sandgren Massih, Sofia

    (Uppsala University)

  • Sjögren, Anna

    () (IFAU, UCLS and SOFI Stockholm University)

Abstract

Most previous studies of intergenerational transmission of human capital are restricted to two generations – parents and their children. In this study we use a Swedish data set which enables us link individual measures of lifetime earnings for three generations and data on educational attainments of four generations. We investigate to what extent estimates based on income data from two generations accurately predict earnings persistence beyond two generations. We also do a similar analysis for intergenerational persistence in educational attainments. We find two-generation studies to severely under-predict intergenerational persistence in earnings and educational attainment over three and four generations.

Suggested Citation

  • Lindahl, Mikael & Palme, Mårten & Sandgren Massih, Sofia & Sjögren, Anna, 2013. "Long-term intergenerational persistence of human capital: an empirical analysis of four generations," Research Papers in Economics 2013:3, Stockholm University, Department of Economics.
  • Handle: RePEc:hhs:sunrpe:2013_0003
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    Cited by:

    1. Bredtmann, Julia & Smith, Nina, 2015. "Inequalities in Educational Outcomes: How Important is the Family?," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112861, Verein für Socialpolitik / German Economic Association.
    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. He Zhu & Tsunehiro OTSUKI, 2018. "Can Two Consecutive Generations’ Data Predict Longterm Intergenerational Transition? Evidence from China with three generations," OSIPP Discussion Paper 18E004, Osaka School of International Public Policy, Osaka University.
    4. Lazuka, Volha, 2017. "The lasting health and income effects of public health formation in Sweden," Lund Papers in Economic History 153, Lund University, Department of Economic History.
    5. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education, Elsevier.
    6. Jørgen Modalsli, 2017. "Intergenerational Mobility in Norway, 1865–2011," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(1), pages 34-71, January.
    7. Jean-Francois Maystadt & Giuseppe Migali, 2017. "The transmission of health across 7 generations in China, 1789-1906," Working Papers 147116320, Lancaster University Management School, Economics Department.
    8. Aydemir, Abdurrahman & Yazici, Hakki, 2017. "Intergenerational Education Mobility and the Level of Development: Evidence from Turkey," IZA Discussion Papers 11164, Institute for the Study of Labor (IZA).
    9. Pekkarinen, Tuomas & Salvanes, Kjell G. & Sarvimäki, Matti, 2016. "The Evolution of Social Mobility: Norway over the 20th Century," IZA Discussion Papers 9752, Institute for the Study of Labor (IZA).
    10. Fernholz, Ricardo T., 2016. "A Model of economic mobility and the distribution of wealth," Journal of Macroeconomics, Elsevier, vol. 50(C), pages 168-192.
    11. Joseph Ferrie & Catherine Massey & Jonathan Rothbaum, 2016. "Do Grandparents and Great-Grandparents Matter? Multigenerational Mobility in the US, 1910-2013," NBER Working Papers 22635, National Bureau of Economic Research, Inc.
    12. Gary S. Becker & Scott Duke Kominers & Kevin M. Murphy & Jörg L. Spenkuch, 2018. "A Theory of Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 126(S1), pages 7-25.
    13. Hällsten, Martin & Pfeffer, Fabian T., 2017. "Grand advantage: family wealth and grandchildren's educational achievement in Sweden," Working Paper Series 2017:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    14. repec:spr:demogr:v:54:y:2017:i:3:d:10.1007_s13524-017-0573-3 is not listed on IDEAS
    15. Guglielmo Barone & Sauro Mocetti, 2016. "Intergenerational mobility in the very long run: Florence 1427-2011," Temi di discussione (Economic working papers) 1060, Bank of Italy, Economic Research and International Relations Area.
    16. Jørgen Modalsli, 2016. "Multigenerational persistence. Evidence from 146 years of administrative data," Discussion Papers 850, Statistics Norway, Research Department.
    17. Kroeger, Sarah & Thompson, Owen, 2016. "Educational mobility across three generations of American women," Economics of Education Review, Elsevier, vol. 53(C), pages 72-86.
    18. Claudia Olivetti & M. Daniele Paserman & Laura Salisbury, 2016. "Three-generation Mobility in the United States, 1850-1940: The Role of Maternal and Paternal Grandparents," Boston College Working Papers in Economics 903, Boston College Department of Economics.
    19. Costas Meghir & Mårten Palme & Emilia Simeonova, 2013. "Education, Cognition and Health: Evidence from a Social Experiment," NBER Working Papers 19002, National Bureau of Economic Research, Inc.
    20. Solon, Gary, 2017. "What Do We Know So Far about Multigenerational Mobility?," IZA Discussion Papers 10623, Institute for the Study of Labor (IZA).
    21. Giacomin Favre & Joël Floris & Ulrich Woitek, 2018. "Intergenerational mobility in the 19th century: micro-level evidence from the city of Zurich," ECON - Working Papers 274, Department of Economics - University of Zurich.
    22. 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.

    More about this item

    Keywords

    Intergenerational income mobility; Human capital transmission; Multigenerational income mobility;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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