Who Gets Ahead? Measuring Income Gaps across Family Backgrounds

Sander de Vries
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Sander de Vries: Vrije Universiteit Amsterdam and Tinbergen Institute

No 25-010/V, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: Measuring income gaps across family backgrounds is crucial for evaluating inequality and informing policy. I develop a multidimensional approach and apply it to Dutch administrative data with exceptionally rich information on parents and extended family. This approach reveals strikingly larger income gaps than standard intergenerational mobility measures, particularly among the most disadvantaged children. A novel decomposition shows that income gaps are largest along parental and extended family income and wealth, though other characteristics matter greatly for specific subgroups. Neighborhoods contribute modestly. Evidence from adoptees suggests that pre-birth factors are an important driver of the observed disparities.

Keywords: Intergenerational mobility; inequality of opportunity (search for similar items in EconPapers)
JEL-codes: I24 J24 J62 (search for similar items in EconPapers)
Date: 2025-02-14, Revised 2026-10-02
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