Dynastic human capital, inequality and intergenerational mobility
Mikael Lindahl () and
Mårten Palme ()
No 2016:19, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy
We study the importance of the extended family – or the dynasty – for the persistence in human capital inequality across generations. We use data including the entire Swedish population, linking four generations. This data structure enables us to – in addition to parents, grandparents and great grandparents – identify parents’ siblings and cousins, as well as their spouses, and the spouses’ siblings. We introduce and estimate a new parameter, which we call the intergenerational transmission of dynastic inequality. This parameter measures the between-dynasty variation in intergenerational transmission of human capital. We use three different measures of human capital: years of schooling, family income and an index of occupational status. Our results show that traditional parent-child estimates miss about half of the persistence across generations estimated by the extended model.
Keywords: intergenerational mobility; extended family; dynasty; human capital (search for similar items in EconPapers)
JEL-codes: I24 J62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dem, nep-edu, nep-lab and nep-ltv
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:ifauwp:2016_019
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