IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/22094.html
   My bibliography  Save this paper

Three-generation Mobility in the United States, 1850-1940: The Role of Maternal and Paternal Grandparents

Author

Listed:
  • Claudia Olivetti
  • M. Daniele Paserman
  • Laura Salisbury

Abstract

This paper estimates intergenerational elasticities across three generations in the United States in the late 19th and early 20th centuries. We extend the methodology in Olivetti and Paserman (2015) to explore the role of maternal and paternal grandfathers for the transmission of economic status to grandsons and granddaughters. We document three main findings. First, grandfathers matter for income transmission, above and beyond their effect on fathers' income. Second, the socio-economic status of grandsons is influenced more strongly by paternal grandfathers than by maternal grandfathers. Third, maternal grandfathers are more important for granddaughters than for grandsons, while the opposite is true for paternal grandfathers. We present a model of multi-trait matching and inheritance that can rationalize these findings.

Suggested Citation

  • Claudia Olivetti & M. Daniele Paserman & Laura Salisbury, 2016. "Three-generation Mobility in the United States, 1850-1940: The Role of Maternal and Paternal Grandparents," NBER Working Papers 22094, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:22094
    Note: DAE LS
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w22094.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Fafchamps, Marcel & Quisumbing, Agnes, 2005. "Assets at marriage in rural Ethiopia," Journal of Development Economics, Elsevier, vol. 77(1), pages 1-25, June.
    2. Esther Duflo, 2003. "Grandmothers and Granddaughters: Old-Age Pensions and Intrahousehold Allocation in South Africa," World Bank Economic Review, World Bank Group, vol. 17(1), pages 1-25, June.
    3. Ran Abramitzky & Leah Platt Boustan & Katherine Eriksson, 2012. "Europe's Tired, Poor, Huddled Masses: Self-Selection and Economic Outcomes in the Age of Mass Migration," American Economic Review, American Economic Association, vol. 102(5), pages 1832-1856, August.
    4. Matthew Rabin & Ted O'Donoghue, 1999. "Doing It Now or Later," American Economic Review, American Economic Association, vol. 89(1), pages 103-124, March.
    5. Chen, Natalie & Conconi, Paola & Perroni, Carlo, 2013. "Multi-trait matching and gender differentials in intergenerational mobility," Economics Letters, Elsevier, vol. 120(2), pages 292-296.
    6. Fafchamps, Marcel & Quisumbing, Agnes R, 2005. "Marriage, Bequest, and Assortative Matching in Rural Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 53(2), pages 347-380, January.
    7. Maia Güell & José V. Rodríguez Mora & Christopher I. Telmer, 2015. "The Informational Content of Surnames, the Evolution of Intergenerational Mobility, and Assortative Mating," Review of Economic Studies, Oxford University Press, vol. 82(2), pages 693-735.
    8. Dribe, Martin & Helgertz, Jonas, 2016. "The Lasting Impact of Grandfathers: Class, Occupational Status, and Earnings over Three Generations in Sweden 1815–2011," The Journal of Economic History, Cambridge University Press, vol. 76(4), pages 969-1000, December.
    9. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800, Elsevier.
    10. Laura Chadwick & Gary Solon, 2002. "Intergenerational Income Mobility Among Daughters," American Economic Review, American Economic Association, vol. 92(1), pages 335-344, March.
    11. Kim, Sukkoo & Margo, Robert A., 2004. "Historical perspectives on U.S. economic geography," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 66, pages 2981-3019, Elsevier.
    12. Alston, Lee J. & Schapiro, Morton Owen, 1984. "Inheritance Laws Across Colonies: Causes and Consequences," The Journal of Economic History, Cambridge University Press, vol. 44(2), pages 277-287, June.
    13. Samuel H. Preston & Michael R. Haines, 1991. "Fatal Years: Child Mortality in Late Nineteenth-Century America," NBER Books, National Bureau of Economic Research, Inc, number pres91-1, December.
    14. Roland G. Fryer & Steven D. Levitt, 2004. "The Causes and Consequences of Distinctively Black Names," The Quarterly Journal of Economics, Oxford University Press, vol. 119(3), pages 767-805.
    15. Duncan Thomas, 1994. "Like Father, like Son; Like Mother, like Daughter: Parental Resources and Child Height," Journal of Human Resources, University of Wisconsin Press, vol. 29(4), pages 950-988.
    16. Claudia Olivetti & M. Daniele Paserman, 2015. "In the Name of the Son (and the Daughter): Intergenerational Mobility in the United States, 1850-1940," American Economic Review, American Economic Association, vol. 105(8), pages 2695-2724, August.
    17. Parman, John, 2011. "American Mobility and the Expansion of Public Education," The Journal of Economic History, Cambridge University Press, vol. 71(1), pages 105-132, March.
    18. Gary Solon, 2018. "What Do We Know So Far about Multigenerational Mobility?," Economic Journal, Royal Economic Society, vol. 128(612), pages 340-352, July.
    19. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez & Nicholas Turner, 2014. "Is the United States Still a Land of Opportunity? Recent Trends in Intergenerational Mobility," American Economic Review, American Economic Association, vol. 104(5), pages 141-147, May.
    20. Kroeger, Sarah & Thompson, Owen, 2016. "Educational mobility across three generations of American women," Economics of Education Review, Elsevier, vol. 53(C), pages 72-86.
    21. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    22. Mikael Lindahl & Mårten Palme & Sofia Sandgren Massih & Anna Sjögren, 2015. "Long-Term Intergenerational Persistence of Human Capital: An Empirical Analysis of Four Generations," Journal of Human Resources, University of Wisconsin Press, vol. 50(1), pages 1-33.
    23. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez, 2014. "Where is the land of Opportunity? The Geography of Intergenerational Mobility in the United States," The Quarterly Journal of Economics, Oxford University Press, vol. 129(4), pages 1553-1623.
    24. Stefano DellaVigna & M. Daniele Paserman, 2005. "Job Search and Impatience," Journal of Labor Economics, University of Chicago Press, vol. 23(3), pages 527-588, July.
    25. E. S. Phelps & R. A. Pollak, 1968. "On Second-Best National Saving and Game-Equilibrium Growth," Review of Economic Studies, Oxford University Press, vol. 35(2), pages 185-199.
    26. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
    27. repec:hrv:faseco:30750027 is not listed on IDEAS
    28. Raymond Fisman & Sheena S. Iyengar & Emir Kamenica & Itamar Simonson, 2006. "Gender Differences in Mate Selection: Evidence From a Speed Dating Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 121(2), pages 673-697.
    29. 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.
    30. Joseph Ferrie & Catherine Massey & Jonathan Rothbaum, 2016. "Do Grandparents and Great-Grandparents Matter? Multigenerational Mobility in the US, 1910-2013," NBER Working Papers 22635, National Bureau of Economic Research, Inc.
    31. Gregory Clark, 2015. "The Son Also Rises: Surnames and the History of Social Mobility," Economics Books, Princeton University Press, edition 1, number 10181-2, October.
    32. Rosenzweig, Mark R & Stark, Oded, 1989. "Consumption Smoothing, Migration, and Marriage: Evidence from Rural India," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 905-926, August.
    33. Atsushi Inoue & Gary Solon, 2010. "Two-Sample Instrumental Variables Estimators," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 557-561, August.
    34. Aloysius Siow, 1998. "Differential Fecundity, Markets, and Gender Roles," Journal of Political Economy, University of Chicago Press, vol. 106(2), pages 334-354, April.
    35. Judith K. Hellerstein & Melinda Sandler Morrill, 2011. "Dads and Daughters: The Changing Impact of Fathers on Women’s Occupational Choices," Journal of Human Resources, University of Wisconsin Press, vol. 46(2), pages 333-372.
    36. Robert Mare, 2011. "A Multigenerational View of Inequality," Demography, Springer;Population Association of America (PAA), vol. 48(1), pages 1-23, February.
    37. Donald Cox, 2003. "Private Transfers within the Family: Mothers, Fathers, Sons and Daughters," Boston College Working Papers in Economics 605, Boston College Department of Economics.
    38. Zhen Zeng & Yu Xie, 2014. "The Effects of Grandparents on Children’s Schooling: Evidence From Rural China," Demography, Springer;Population Association of America (PAA), vol. 51(2), pages 599-617, April.
    39. William J. Collins & Marianne H. Wanamaker, 2017. "African American Intergenerational Economic Mobility Since 1880," NBER Working Papers 23395, National Bureau of Economic Research, Inc.
    40. Collado, M. Dolores & Ortuño-Ortín, Ignacio & Romeu, Andrés, 2012. "Intergenerational linkages in consumption patterns and the geographical distribution of surnames," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 341-350.
    41. Posadas, Josefina & Vidal-Fernández, Marian, 2012. "Grandparents' Childcare and Female Labor Force Participation," IZA Discussion Papers 6398, Institute of Labor Economics (IZA).
    42. David Laibson, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 443-478.
    43. Gary Solon, 2013. "Theoretical Models of Inequality Transmission across Multiple Generations," NBER Working Papers 18790, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simon Clark, 2020. ""You're Just My Type!" Matching and Payoffs When Like Attracts Like," Edinburgh School of Economics Discussion Paper Series 295, Edinburgh School of Economics, University of Edinburgh.
    2. Adrian Adermon & Mikael Lindahl & Daniel Waldenström, 2018. "Intergenerational Wealth Mobility and the Role of Inheritance: Evidence from Multiple Generations," Economic Journal, Royal Economic Society, vol. 128(612), pages 482-513, July.
    3. Shelly Lundberg & Aloysius Siow, 2017. "Canadian contributions to family economics," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1304-1323, December.
    4. Inwood, Kris & Minns, Chris & Summerfield, Fraser, 2019. "Occupational income scores and immigrant assimilation. Evidence from the Canadian census," Explorations in Economic History, Elsevier, vol. 72(C), pages 114-122.
    5. Samuel Bazzi & Martin Fiszbein & Mesay Gebresilasse, 2020. "Frontier Culture: The Roots and Persistence of “Rugged Individualism” in the United States," Econometrica, Econometric Society, vol. 88(6), pages 2329-2368, November.
    6. Andra C. Ghent & Marianna Kudlyak, 2015. "Intergenerational Linkages in Household Credit," Working Paper 15-14, Federal Reserve Bank of Richmond.
    7. Martin Nybom & Jan Stuhler, 2019. "Steady-state assumptions in intergenerational mobility research," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(1), pages 77-97, March.
    8. Alberto Alesina & Sebastian Hohmann & Stelios Michalopoulos & Elias Papaioannou, 2021. "Intergenerational Mobility in Africa," Econometrica, Econometric Society, vol. 89(1), pages 1-35, January.
    9. John Komlos, 2016. "Unemployment in a Just Economy," CESifo Working Paper Series 5974, CESifo.
    10. Kelly Vosters & Jørgen Modalsli, 2019. "Spillover bias in multigenerational income regressions," Discussion Papers 897, Statistics Norway, Research Department.
    11. Ran Abramitzky & Leah Platt Boustan & Elisa Jácome & Santiago Pérez, 2019. "Intergenerational Mobility of Immigrants in the US over Two Centuries," NBER Working Papers 26408, National Bureau of Economic Research, Inc.
    12. Anke Becker, 2019. "On the Economic Origins of Restrictions on Women's Sexuality," CESifo Working Paper Series 7770, CESifo.
    13. Teresa Barbieri & Francesco Bloise & Michele Raitano, 2020. "Intergenerational Earnings Inequality: New Evidence From Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(2), pages 418-443, June.
    14. Ian Lundberg, 0. "Does Opportunity Skip Generations? Reassessing Evidence From Sibling and Cousin Correlations," Demography, Springer;Population Association of America (PAA), vol. 0, pages 1-21.
    15. Ian Lundberg, 2020. "Does Opportunity Skip Generations? Reassessing Evidence From Sibling and Cousin Correlations," Demography, Springer;Population Association of America (PAA), vol. 57(4), pages 1193-1213, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Colagrossi, Marco & d’Hombres, Béatrice & Schnepf, Sylke V, 2020. "Like (grand)parent, like child? Multigenerational mobility across the EU," European Economic Review, Elsevier, vol. 130(C).
    2. Adermon, Adrian & Lindahl, Mikael & Palme, Mårten, 2016. "Dynastic human capital, inequality and intergenerational mobility," Working Paper Series 2016:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Giovanni Razzu & Ayago Wambile, 2020. "Three-generation educational mobility in six African countries," Economics Discussion Papers em-dp2020-23, Department of Economics, Reading University.
    4. Adrian Adermon & Mikael Lindahl & Daniel Waldenström, 2018. "Intergenerational Wealth Mobility and the Role of Inheritance: Evidence from Multiple Generations," Economic Journal, Royal Economic Society, vol. 128(612), pages 482-513, July.
    5. Arenas, Andreu & Malgouyres, Clément, 2018. "Countercyclical school attainment and intergenerational mobility," Labour Economics, Elsevier, vol. 53(C), pages 97-111.
    6. Gary S. Becker & Scott Duke Kominers & Kevin M. Murphy & Jörg L. Spenkuch, 2018. "A Theory of Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 126(S1), pages 7-25.
    7. Kelly Vosters & Jørgen Modalsli, 2019. "Spillover bias in multigenerational income regressions," Discussion Papers 897, Statistics Norway, Research Department.
    8. Giacomin Favre & Joël Floris & Ulrich Woitek, 2018. "Intergenerational mobility in the 19th century: micro-level evidence from the city of Zurich," ECON - Working Papers 274, Department of Economics - University of Zurich.
    9. Jørgen Modalsli, 2017. "Intergenerational Mobility in Norway, 1865–2011," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(1), pages 34-71, January.
    10. Aydemir, Abdurrahman B. & Yazici, Hakki, 2019. "Intergenerational education mobility and the level of development," European Economic Review, Elsevier, vol. 116(C), pages 160-185.
    11. Ian Lundberg, 2020. "Does Opportunity Skip Generations? Reassessing Evidence From Sibling and Cousin Correlations," Demography, Springer;Population Association of America (PAA), vol. 57(4), pages 1193-1213, August.
    12. Gary Solon, 2018. "What Do We Know So Far about Multigenerational Mobility?," Economic Journal, Royal Economic Society, vol. 128(612), pages 340-352, July.
    13. Zachary Ward, 2019. "Intergenerational Mobility in American History: Accounting for Race and Measurement Error," CEH Discussion Papers 10, Centre for Economic History, Research School of Economics, Australian National University.
    14. Andra C. Ghent & Marianna Kudlyak, 2015. "Intergenerational Linkages in Household Credit," Working Paper 15-14, Federal Reserve Bank of Richmond.
    15. Kroeger, Sarah & Thompson, Owen, 2016. "Educational mobility across three generations of American women," Economics of Education Review, Elsevier, vol. 53(C), pages 72-86.
    16. Abdurrahman B. Aydemir & Hakki Yazici, 2017. "Intergenerational Education Mobility and the Level of Development: Evidence from Turkey," Koç University-TUSIAD Economic Research Forum Working Papers 1717, Koc University-TUSIAD Economic Research Forum.
    17. Carneiro, Pedro & Lee, Sokbae & Reis, Hugo, 2020. "Please call me John: Name choice and the assimilation of immigrants in the United States, 1900–1930," Labour Economics, Elsevier, vol. 62(C).
    18. Catherine Guirkinger & Gani Aldashev & Alisher Aldashev & Maté Fodor, 2020. "Economic Persistence despite Adverse Policies: Evidence from Kyrgyzstan," Working Papers ECARES 2020-39, ULB -- Universite Libre de Bruxelles.
    19. Martin Nybom & Jan Stuhler, 2019. "Steady-state assumptions in intergenerational mobility research," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(1), pages 77-97, March.
    20. Chen, Yuyu & Naidu, Suresh & Yu, Tinghua & Yuchtman, Noam, 2015. "Intergenerational mobility and institutional change in 20th century China," Explorations in Economic History, Elsevier, vol. 58(C), pages 44-73.

    More about this item

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:22094. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.