Family wealth and the class ceiling: the propulsive power of the bank of Mum and Dad

Maren Toft and Sam Friedman

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: In this article we demonstrate that those from working-class backgrounds face a powerful ‘class ceiling’ in elite occupations. Examining how class origin shapes economic returns in the Norwegian upper class (3.8% of the population), we first find that the income advantage enjoyed by those from privileged backgrounds increases sharply as they ascend the income distribution in both elite business and cultural fields. Second, we show that those from economically upper-class backgrounds enjoy the highest pay advantage in all upper-class destinations. Finally, we demonstrate the profound propulsive power provided by parental wealth. Our results indicate that this is the most important single driver of the class-origin income gap in virtually every area of the Norwegian upper class. These findings move forward an emerging literature on class-origin pay gaps beyond mean estimates to reveal the distinct ‘pay-off’ to class privilege in the very highest income-earning positions.

Keywords: class ceiling; elites; income inequality; wealth (search for similar items in EconPapers)
JEL-codes: N0 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2020-06-10
New Economics Papers: this item is included in nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Sociology, 10, June, 2020. ISSN: 0038-0385

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:105198

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