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Intergenerational Top Income Mobility in Sweden: A Combination of Equal Opportunity and Capitalistic Dynasties

Author

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  • Björklund, Anders

    (SOFI, Stockholm University)

  • Roine, Jesper

    (Stockholm Institute of Transition Economics)

  • Waldenström, Daniel

    (Research Institute of Industrial Economics, Stockholm)

Abstract

This paper presents new evidence on intergenerational income and earnings mobility in the top of the distributions. Using a large dataset of matched father-son pairs in Sweden we are able to obtain results for fractions as small as 0.1 percent of the population. Overall, mobility is lower for incomes than for earnings and it appears to decrease the higher up in the distribution one goes. In the case of incomes, however, we find that mobility decreases dramatically within the top percentile of the population. Our results suggest that Sweden, well-known for its egalitarian achievements, is a society where equality of opportunity for a large majority of wage earners coexists with capitalistic dynasties.

Suggested Citation

  • Björklund, Anders & Roine, Jesper & Waldenström, Daniel, 2008. "Intergenerational Top Income Mobility in Sweden: A Combination of Equal Opportunity and Capitalistic Dynasties," IZA Discussion Papers 3801, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3801
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    Cited by:

    1. Anders Björklund & Markus Jäntti & John Roemer, 2012. "Equality of opportunity and the distribution of long-run income in Sweden," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 39(2), pages 675-696, July.
    2. Black, Sandra E. & Devereux, Paul J., 2011. "Recent Developments in Intergenerational Mobility," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 16, pages 1487-1541, Elsevier.
    3. Michael R. Veall, 2012. "Top income shares in Canada: recent trends and policy implications," Canadian Journal of Economics, Canadian Economics Association, vol. 45(4), pages 1247-1272, November.
    4. Björklund, Anders & Roine, Jesper & Waldenström, Daniel, 2012. "Intergenerational top income mobility in Sweden: Capitalist dynasties in the land of equal opportunity?," Journal of Public Economics, Elsevier, vol. 96(5), pages 474-484.
    5. Muhammed Abdul Khalid, 2018. "Climbing the Ladder: Socioeconomic Mobility in Malaysia," Asian Economic Papers, MIT Press, vol. 17(3), pages 1-23, Fall.
    6. Bergh, Andreas, 2011. "The Rise, Fall and Revival of a Capitalist Welfare State: What are the Policy Lessons from Sweden," Working Paper Series 873, Research Institute of Industrial Economics.

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    More about this item

    Keywords

    income inequality; earnings inequality; top incomes; intergenerational income mobility; welfare state; non-linear regression; quantile regression;
    All these keywords.

    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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