Family, Community and Long-Term Earnings Inequality

Paul Bingley, Lorenzo Cappellari and Konstantinos Tatsiramos

No 2016-01, Discussion Papers from University of Nottingham, GEP

Abstract: Correlations between the earnings of siblings reflect shared family and community background, but evidence is mixed on the relative magnitudes of these influences. Using administrative data on the Danish population we link brothers, schoolmates and teenage neighbors and estimate a model of multiple group earnings dynamics to measure jointly the relative importance of family, neighborhoods and schools for long-term earnings. We find that: (1) family is by far the most relevant factor; (2) the influence of neighborhoods and schools falls rapidly, becoming insignificant by age 30; and (3) community effects are persistent and upward biased by a factor of five if family effects are ignored.

Keywords: Sibling correlations; Neighbourhoods; Schools; Life-cycle earnings; Inequality (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-eur, nep-pbe and nep-ure
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Family, Community and Long-Term Earnings Inequality (2016)
Working Paper: Family, Community and Long-Term Earnings Inequality (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:not:notgep:16/01

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