Following in Your Father's Footsteps: A Note on the Intergenerational Transmission of Income between Twin Fathers and their Sons
We provide the first twin-based estimates of the intergenerational transmission of income between fathers and sons. Using Swedish register data on the income of monozygotic twin fathers and their sons, we are able to control for unobserved endowments at the twin-pair level when estimating the intergenerational relationship. We find a cross-sectional intergenerational income elasticity of 0.276, while our twin-based intergenerational income elasticity is 0.12. This is close to the estimate of 0.10 found by Björklund et al. (2006) using an adoption design. This suggests that at most half of the income transmission can be given a causal interpretation.
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- Anders Bohlmark & Matthew J. Lindquist, 2006. "Life-Cycle Variations in the Association between Current and Lifetime Income: Replication and Extension for Sweden," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 879-900, October.
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- Helena Holmlund & Mikael Lindahl & Erik Plug, 2010.
"The Causal Effect of Parents' Schooling on Children's Schooling - A Comparison of Estimation Methods,"
CESifo Working Paper Series
3234, CESifo Group Munich.
- Helena Holmlund & Mikael Lindahl & Erik Plug, 2011. "The Causal Effect of Parents' Schooling on Children's Schooling: A Comparison of Estimation Methods," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 615-651, September.
- Holmlund, Helena & Lindahl, Mikael & Plug, Erik, 2008. "The Causal Effect of Parent's Schooling on Children's Schooling: A Comparison of Estimation Methods," IZA Discussion Papers 3630, Institute for the Study of Labor (IZA).
- Haoming Liu & Jinli Zeng, 2009. "Genetic ability and intergenerational earnings mobility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(1), pages 75-95, January.
- Björklund, Anders & Lindahl, Mikael & Plug, Erik, 2005.
"The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data,"
IZA Discussion Papers
1739, Institute for the Study of Labor (IZA).
- Anders Björklund & Mikael Lindahl & Erik Plug, 2006. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data," The Quarterly Journal of Economics, Oxford University Press, vol. 121(3), pages 999-1028.
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