Correlations of Brothers' Earnings and Intergenerational Transmission

Paul Bingley and Lorenzo Cappellari

No 6473, CESifo Working Paper Series from CESifo

Abstract: Correlations between parent and child earnings reflect intergenerational mobility and, more broadly, correlations between siblings’ earnings reflect shared community and family background. These earnings relationships capture important aspects of relations in socio-economic status more generally. We estimate intergenerational transmission and sibling correlations of life-cycle earnings jointly within a unified framework that nests previous models. Using data on the Danish population of father/first-son/second-son triads we find that intergenerational effects account for on average 72 percent of sibling correlations. This share is higher than all previous studies because we allow for heterogeneous intergenerational transmission between families. Sibling correlations exhibit a U-shape over the working life, consistent with differences in human capital investments between families.

Keywords: sibling correlations; intergenerational transmission (search for similar items in EconPapers)
JEL-codes: D31 J62 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-ltv
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Correlation of Brothers' Earnings and Intergenerational Transmission (2019)
Working Paper: Correlations of Brothers' Earnings and Intergenerational Transmission (2017)
Working Paper: Correlation of Brothers Earnings and Intergenerational Transmission (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_6473

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