Intergenerational Top Income Mobility in Sweden: A Combination of Equal Opportunity and Capitalistic Dynasties

23 Pages Posted: 11 Nov 2008

See all articles by Anders Bjorklund

Anders Bjorklund

Stockholm University; IZA Institute of Labor Economics

Jesper Roine

Stockholm School of Economics - Department of Economics

Daniel Waldenström

Research Institute of Industrial Economics

Abstract

This paper presents new evidence on intergenerational income and earnings mobility in the top of the distributions. Using a large dataset of matched father-son pairs in Sweden we are able to obtain results for fractions as small as 0.1 percent of the population. Overall, mobility is lower for incomes than for earnings and it appears to decrease the higher up in the distribution one goes. In the case of incomes, however, we find that mobility decreases dramatically within the top percentile of the population. Our results suggest that Sweden, well-known for its egalitarian achievements, is a society where equality of opportunity for a large majority of wage earners coexists with capitalistic dynasties.

Keywords: intergenerational income mobility, top incomes, earnings inequality, income inequality, welfare state, non-linear regression, quantile regression

JEL Classification: D31, J62

Suggested Citation

Bjorklund, Anders and Roine, Jesper and Waldenstrom, Daniel, Intergenerational Top Income Mobility in Sweden: A Combination of Equal Opportunity and Capitalistic Dynasties. IZA Discussion Paper No. 3801. Available at SSRN: https://ssrn.com/abstract=1298244 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Anders Bjorklund (Contact Author)

Stockholm University ( email )

Swedish Institute for Social Research (SOFI)
S-106 91 Stockholm
Sweden
+46 8 163452 (Phone)
+46 8 154670 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Jesper Roine

Stockholm School of Economics - Department of Economics ( email )

P.O. Box 6501
Sveavagen 65
S-113 83 Stockholm
Sweden
+46-8-7369000 (Phone)

Daniel Waldenstrom

Research Institute of Industrial Economics ( email )

P.O. Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

HOME PAGE: http://www.ifn.se/danielw

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