Family, Community and Life-Cycle Earnings: Evidence from Siblings and Youth Peers

Paul Bingley, Lorenzo Cappellari and Konstantinos Tatsiramos

No 6743, CESifo Working Paper Series from CESifo

Abstract: Using longitudinal data based on administrative registers for the population of Danish men we develop a model which accounts for the joint earnings dynamics of siblings and youth community peers. We are the first to decompose the sibling correlation of permanent earnings into family and community effects allowing for life-cycle dynamics; finding that family is the most important factor influencing earnings inequality over the life cycle. Community background explains a substantial share of the sibling correlation of earnings early in the working life, but its importance diminishes over time and becomes negligible after age 30.

Keywords: sibling correlation; neighborhoods; schools; long-term inequality (search for similar items in EconPapers)
JEL-codes: D31 J62 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-lab, nep-ltv and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_6743

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