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The Intergenerational Transmission of Employers in Canada and Denmark

  • Bingley, Paul

    ()

    (SFI - Danish National Centre for Social Research)

  • Corak, Miles

    ()

    (University of Ottawa)

  • Westergård-Nielsen, Niels C.

    ()

    (Copenhagen Business School)

The intergenerational transmission of employers between fathers and sons is a common feature of labour markets in Canada and Denmark, with 30 to 40% of young adults having at some point been employed with a firm that also employed their fathers. This is strongly associated with the first jobs obtained during the teen years, but for four to about six percent it also refers to the main job in adulthood. In both countries the transmission of employers is positively associated with paternal earnings, rising distinctly and sharply at the very top of the father's earnings distribution, and has implications for the intergenerational transmission of earnings. Mobility out of the bottom has little to do with inheriting an employer from the father, while the preservation of high income status is distinctly related to this tendency. These findings stress that child adult outcomes are related to the structure of labour markets, and underscore the role of resources parents have – though information, networks, or direct control of the hiring process – in facilitating the job search of their children.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5593.

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Length: 33 pages
Date of creation: Mar 2011
Date of revision:
Publication status: published in: John Ermisch, Markus Jantti, and Timothy Smeeding (editors). From Parents to Children: The Intergenerational Transmission of Advantage. Russell Sage Foundation, 2012.
Handle: RePEc:iza:izadps:dp5593
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References listed on IDEAS
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  1. Harry J. Holzer, 1986. "Search Method Use by Unemployed Youth," NBER Working Papers 1859, National Bureau of Economic Research, Inc.
  2. Corak, Miles & Piraino, Patrizio, 2010. "Intergenerational Earnings Mobility and the Inheritance of Employers," IZA Discussion Papers 4876, Institute for the Study of Labor (IZA).
  3. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
  4. Corak, Miles & Piraino, Patrizio, 2010. "The Intergenerational Transmission of Employers," IZA Discussion Papers 4819, Institute for the Study of Labor (IZA).
  5. Corak, Miles, 2006. "Do Poor Children Become Poor Adults? Lessons from a Cross Country Comparison of Generational Earnings Mobility," IZA Discussion Papers 1993, Institute for the Study of Labor (IZA).
  6. Blanchflower, D. & Oswald, A., 1990. "What Makes A Young Entrepreneur?," Papers 373, London School of Economics - Centre for Labour Economics.
  7. Linda Datcher Loury, 2006. "Some Contacts Are More Equal than Others: Informal Networks, Job Tenure, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 24(2), pages 299-318, April.
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