Unobservable Family and Individual Contributions to the Distributionsof Income and Wealth

J R Kearl and Clayne L Pope

Journal of Labor Economics, 1986, vol. 4, issue 3, S48-79

Abstract: This paper uses combinations of full brothers, half brothers, and fathers and sons to measure the effect of common family background on a household's income and wealth. Intraclass correlations of half brothers, compared to those for full brothers, suggest that fathers play a dominant role in the transmission of the common family effect. When unobserved background is decomposed into individual and family effects, the individual effect dominates the family effect for income, while the family effect dominates the individual effect for wealth. Copyright 1986 by University of Chicago Press.

Date: 1986
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