Heterogenous latent factor models using horizontal kinship

Marco Colagrossi, Claudio Deiana, Andrea Geraci, Ludovica Giua and Gianluca Mazzarella
Additional contact information
Marco Colagrossi: European Commission, https://ec.europa.eu/jrc/en
Claudio Deiana: University of Cagliari and CRENoS, https://crenos.unica.it/crenos/
Andrea Geraci: University of Pavia, https://portale.unipv.it/it

No 2024-01, JRC Working Papers in Economics and Finance from Joint Research Centre, European Commission

Abstract: We reconstruct the genealogical tree of all individuals ever appearing in Dutch municipalities records since 1995. Using microdata from tax authorities, we compute a measure of their permanent earnings and assess the degree to which the intergenerational transmission process is heterogeneous. Our analysis relies on traditional estimates as well as model assuming a latent transmission of family endowments. In both cases, we show that offspring born into families belonging to the lowest percentiles of the income distribution show a higher degree of intergenerational persistence. The same applies when looking at heterogeneity in intergenerational mobility along the grandparental wealth, potentially suggesting the existence of poverty traps.

Keywords: intergenerational mobility; sibling correlations; inequality (search for similar items in EconPapers)
JEL-codes: I24 J62 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2024-09
New Economics Papers: this item is included in nep-his
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