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

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Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Raaum, Oddbjørn & Bratsberg, Bernt & Røed, Knut & Österbacka, Eva & Eriksson, Tor & Jäntti, Markus & Naylor, Robin, 2007. "Marital Sorting, Household Labor Supply, and Intergenerational Earnings Mobility across Countries," IZA Discussion Papers 3037, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp3037
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    Keywords

    joint labor supply; intergenerational mobility; assortative mating;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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