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Intergenerational Earnings Mobility Among Daughters and Sons: Evidence from Sweden and a Comparison with the United States
Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI). (Nationalekonomi)
2008 (English)In: The American journal of economics and sociology, ISSN 0002-9246, E-ISSN 1536-7150, Vol. 67, no 5, 777-826 p.Article in journal (Refereed) Published
Abstract [en]

This paper adopts Chadwick and Solon's (2002) model by using family earnings in the study of intergenerational earnings mobility with a highlight on the role of assortative mating. I analyze mean and quantile regression coefficients as well as transition matrices to investigate family earnings mobility between parents and daughters, and parents and sons from Swedish register data. My findings indicate that Sweden has a higher degree of mobility compared to the U.S., and that assortative mating also plays an important role as a channel through which income status is transmitted across generations in Sweden. However, the difference in intergenerational mobility patterns between the two countries does not, inherently, depend on factors that affect the marriage match. Swedish daughters and sons exhibit a rather similar scheme of intergenerational earnings transmission. Daughters tend to be slightly more mobile than sons and the difference between their elasticity estimates is small but statistically significant. The quantile regression approach reveals that parents' family earnings are less important as explanatory variable at the upper end of the children's earnings distribution than it is at the bottom, while transition matrices show substantial earnings persistence in the top earnings class.

Place, publisher, year, edition, pages
Hoboken, New Jersey: Blackwell-Wiley , 2008. Vol. 67, no 5, 777-826 p.
Keyword [en]
Assortative Mating, Quantile Regression, Transition Matrices
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:su:diva-36898DOI: 10.1111/j.1536-7150.2008.00598.xISI: 000261443100003OAI: oai:DiVA.org:su-36898DiVA: diva2:291019
Projects
Arbetsmarknadsekonomi
Available from: 2010-01-29 Created: 2010-01-29 Last updated: 2017-12-12Bibliographically approved
In thesis
1. Essays in Empirical Labour Economics: Family Background, Gender and Earnings
Open this publication in new window or tab >>Essays in Empirical Labour Economics: Family Background, Gender and Earnings
2010 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

All three essays in this thesis are concerned with the interrelation of family, gender and labour market outcomes.

The first paper investigates family earnings mobility between parents and sons, and parents and daughters, highlighting the role of assortative mating. The results suggest that daughters are more mobile than sons. I also find that Sweden has a higher degree of mobility compared to the U.S., and that assortative mating is an important underlying channel for earnings transmission. The difference in mobility between the two countries does not inherently depend on factors affecting the marriage match. Moreover, adult economic outcomes are more dependent on family background for those at the lower end of the earnings distribution.

The second study analyses the long-run effects of an increase in family size on the 1980-2005 labour market outcomes of Swedish men and women. The decision to have (more) children is dependent on current and future labour market prospects. I use the exogenous variations in the sex composition of the first two children to overcome this endogeneity problem. My findings suggest that having an additional child has a stronger negative impact on earnings than on participation. However, mothers experience a substantial but not complete long-term recovery in earnings.

The third paper illustrates the difficulty in disentangling the underlying channels of intergenerational earnings persistence using a path analysis model. On closer examination, such a model has a potential shortcoming since the covariates are correlated to other unobserved factors. The results suggest that education is the most influential mechanism in the earnings transmission process, while IQ, mental ability and BMI are of secondary importance. However, education is sensitive to the inclusion of other covariates and the order in which these are entered into the equation.

Place, publisher, year, edition, pages
Stockholm: Department of Economics, Stockholm University, 2010. 22 p.
Series
Swedish Institute for Social Research, ISSN 0283-8222 ; 79
Keyword
Intergenerational mobility, Assortative mating, Nonlinearity, Female labour force participation, Sex-mix composition, Cognitive and non-cognitive abilities, Education
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:su:diva-37073 (URN)978-91-7447-015-4 (ISBN)
Public defence
2010-03-19, hörsal 9, hus D, Universitetsvägen 10 D, Stockholm, 10:00 (English)
Opponent
Supervisors
Note
At the time of the doctoral defense, the following papers were unpublished and had a status as follows: Paper 2: Manuscript. Paper 3: Manuscript.Available from: 2010-02-25 Created: 2010-02-08 Last updated: 2012-02-16Bibliographically approved

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