Family, Community and Long-Term Earnings Inequality

Paul Bingley (), Lorenzo Cappellari and Konstantinos Tatsiramos
Additional contact information
Paul Bingley: VIVE - The Danish Centre for Applied Social Science

No 10089, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper studies the influence of family, schools and neighborhoods on life-cycle earnings inequality. We develop an earnings dynamics model linking brothers, schoolmates and teenage parish neighbors using population register data for Denmark. We exploit differences in the timing of family mobility and the partial overlap of schools and neighborhoods to separately identify sorting from community and family effects. We find that family is far more important than community in influencing earnings inequality over the life cycle. Neighborhoods and schools influence earnings only early in the working life and this influence falls rapidly and becomes negligible after age 30.

Keywords: life-cycle earnings; schools; neighborhoods; sibling correlations; inequality (search for similar items in EconPapers)
JEL-codes: D31 J62 (search for similar items in EconPapers)
Pages: 60 pages
Date: 2016-07
New Economics Papers: this item is included in nep-cse, nep-dem, nep-eur, nep-lab, nep-ltv, nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - revised version published as 'Family, Community and Long-Term Socioeconomic Inequality: Evidence from Siblings and Youth Peers' in: Economic Journal, 2020, 131 (636), 1515 -1554

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https://docs.iza.org/dp10089.pdf (application/pdf)

Related works:
Working Paper: Family, Community and Long-Term Earnings Inequality (2016)
Working Paper: Family, Community and Long-Term Earnings Inequality (2014)
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