The effect of parental background along the sons’ earnings distribution: does one pattern fit for all?

Michele Raitano, Claudia Vittori and Francesco Vona

Applied Economics Letters, 2016, vol. 23, issue 15, 1073-1078

Abstract: This article sheds light on the differences in the mechanisms generating intergenerational inequality in the four largest Euro Area economies (Spain, Italy, Germany and France) looking at the association between parental background and sons’ earnings along the sons’ distribution. We find that in all countries returns to parental background increase along the sons’ earnings distribution and the probability of ending up in high deciles is significantly correlated with parental background. However, although these findings lend support to the existence of a common mechanism, substantial differences in returns’ steepness question the one-pattern-fits-all story.

Date: 2016
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DOI: 10.1080/13504851.2015.1136386

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