Family, Community and Long-Term Earnings Inequality

Paul Bingley, Lorenzo Cappellari and Konstantinos Tatsiramos

No def017, DISCE - Working Papers del Dipartimento di Economia e Finanza from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)

Abstract: Correlations between the earnings of siblings reflect shared family and community background, but evidence is mixed on the relative magnitudes of these influences. We estimate long run earnings correlations between brothers, school mates and teenage neighbors jointly in a unified framework. Using administrative data on the Danish population we find that (1) family is by far the most relevant factor that shapes long-term earnings; (2) the contribution of neighborhood and school quality on long-term earnings is overestimated if the family component is ignored, and becomes negligible and not significantly different from zero by age 30; and (3) the importance of family declines over the life-cycle.

Keywords: Sibling correlations; Neighborhoods; Schools; Life-cycle earnings; Inequality (search for similar items in EconPapers)
JEL-codes: D31 J62 (search for similar items in EconPapers)
Pages: 40
Date: 2014-10
New Economics Papers: this item is included in nep-ltv
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Citations: View citations in EconPapers (25)

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http://dipartimenti.unicatt.it/economia-finanza-def017.pdf First version, 2014 (application/pdf)

Related works:
Working Paper: Family, Community and Long-Term Earnings Inequality (2016)
Working Paper: Family, Community and Long-Term Earnings Inequality (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ctc:serie1:def017

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