Abstract

http://ssrn.com/abstract=2039649
 
 

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The Intergenerational Persistence of Human Capital: An Empirical Analysis of Four Generations


Mikael Lindahl


University of Bonn; Institute for the Study of Labor (IZA)

Marten Palme


Stockholm School of Economics - Department of Economic Statistics; Institute for the Study of Labor (IZA)

Sofia Sandgren Massih


affiliation not provided to SSRN

Anna Sjögren


IFAU - Institute for Labour Market Policy Evaluation; Stockholm University - Swedish Institute for Social Research (SOFI)


IZA Discussion Paper No. 6463

Abstract:     
Most previous studies of intergenerational transmission of human capital are restricted to two generations – parents and their children. In this study we use a Swedish data set which enables us link individual measures of lifetime earnings for three generations and data on educational attainments of four generations. We investigate to what extent estimates based on income data from two generations accurately predicts earnings persistence beyond two generations. We also do a similar analysis for intergenerational persistence in educational attainments. We find two-generation studies to severely under-predict intergenerational persistence in earnings and educational attainment over three generations. Finally, we use our multigenerational data on educational attainment to estimate the structural parameters in the Becker-Tomes model. Our results suggest a small or no causal effect of parental education on children's educational attainment.

Number of Pages in PDF File: 34

Keywords: multigenerational income mobility, human capital transmission, intergenerational income mobility

JEL Classification: D31, J62

working papers series


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Date posted: April 14, 2012  

Suggested Citation

Lindahl, Mikael and Palme, Marten and Sandgren Massih, Sofia and Sjögren, Anna, The Intergenerational Persistence of Human Capital: An Empirical Analysis of Four Generations. IZA Discussion Paper No. 6463. Available at SSRN: http://ssrn.com/abstract=2039649

Contact Information

Mikael Lindahl (Contact Author)
University of Bonn ( email )
Postfach 2220
Bonn, D-53012
Germany
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Marten Palme
Stockholm School of Economics - Department of Economic Statistics ( email )
P.O. Box 6501
S-113 83 Stockholm
Sweden
+46-8-7369222 (Phone)
+46-8-348161 (Fax)
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Sofia Sandgren Massih
affiliation not provided to SSRN
Anna Sjoegren
IFAU - Institute for Labour Market Policy Evaluation ( email )
Box 513
751 20 Uppsala
Sweden
Stockholm University - Swedish Institute for Social Research (SOFI) ( email )
Kyrkgatan 43B
SE-106 91 Stockholm
Sweden
Feedback to SSRN


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