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Marital Sorting, Household Labor Supply, and Intergenerational Earnings Mobility across Countries

  • Raaum, Oddbjørn

    ()

    (Ragnar Frisch Centre for Economic Research)

  • Bratsberg, Bernt

    ()

    (Ragnar Frisch Centre for Economic Research)

  • Røed, Knut

    ()

    (Ragnar Frisch Centre for Economic Research)

  • Österbacka, Eva

    ()

    (Abo Akademi University)

  • Eriksson, Tor

    ()

    (Aarhus School of Business)

  • Jäntti, Markus

    ()

    (SOFI, Stockholm University)

  • Naylor, Robin

    ()

    (University of Warwick)

We present comparable evidence on intergenerational earnings mobility for Denmark, Finland, Norway, the UK and the US, with a focus on the role of gender and marital status. We confirm that earnings mobility in the Nordic countries is typically greater than in the US and in the UK, but find that, in contrast to all other groups, for married women mobility is approximately uniform across countries when estimates are based on women's own earnings. Defining offspring outcomes in terms of family earnings, on the other hand, leads to estimates of intergenerational mobility in the Nordic countries which exceed those for the US and the UK for both men and women, single and married. Unlike in the Nordic countries, we find that married women with children and with husbands from affluent backgrounds tend to exhibit reduced labor supply in the US and the UK. In these countries, it is the combination of assortative mating and labor supply responses which weakens the association between married women's own earnings and their parents' earnings.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3037.

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Length: 57 pages
Date of creation: Sep 2007
Date of revision:
Publication status: published in: B.E. Journal of Economic Analysis and Policy: Advances in Economic Analysis and Policy, 2007, 7 (2), Article 7
Handle: RePEc:iza:izadps:dp3037
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