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Elite Persistence in Family: The Role of Adoption in Prewar Japan

Author

Listed:
  • Hiroshi Kumanomido

    (LMU Munich)

  • Yutaro Takayasu

    (The University of Tokyo)

Abstract

Why can elite families often maintain their social and economic status over multiple generations? We show that adoption can contribute to the persistence of elite status by utilizing a unique historical framework of prewar Japan. However, the preference for adopted heirs may lead to selection bias in the process of choosing heirs, potentially biasing OLS results negatively. To address this selection bias, we use the gender of the firstborn child as an instrument for the adoption decision. We find that having an adopted heir increases the probability of maintaining elite status in the son’s generation by 27% compared to having a biological heir. Furthermore, we show that this result is driven by matching high-quality adopted sons with fathers who were highly successful in their early lives.

Suggested Citation

  • Hiroshi Kumanomido & Yutaro Takayasu, 2025. "Elite Persistence in Family: The Role of Adoption in Prewar Japan," Rationality and Competition Discussion Paper Series 537, CRC TRR 190 Rationality and Competition.
    • Handle: RePEc:rco:dpaper:537
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    Keywords

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    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East

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