The Intergenerational Transmission of Employers in Canada and Denmark

33 Pages Posted: 28 Mar 2011

See all articles by Paul Bingley

Paul Bingley

Aarhus University - National Centre for Register-Based Research

Miles Corak

Statistics Canada; University of Ottawa; IZA Institute of Labor Economics

Niels Westergaard-Nielsen

Copenhagen Business School; IZA Institute of Labor Economics

Abstract

The intergenerational transmission of employers between fathers and sons is a common feature of labour markets in Canada and Denmark, with 30 to 40% of young adults having at some point been employed with a firm that also employed their fathers. This is strongly associated with the first jobs obtained during the teen years, but for four to about six percent it also refers to the main job in adulthood. In both countries the transmission of employers is positively associated with paternal earnings, rising distinctly and sharply at the very top of the father's earnings distribution, and has implications for the intergenerational transmission of earnings. Mobility out of the bottom has little to do with inheriting an employer from the father, while the preservation of high income status is distinctly related to this tendency. These findings stress that child adult outcomes are related to the structure of labour markets, and underscore the role of resources parents have – though information, networks, or direct control of the hiring process – in facilitating the job search of their children.

Keywords: intergenerational mobility, job search, equality of opportunity

JEL Classification: J62, J64, J24

Suggested Citation

Bingley, Paul and Corak, Miles and Westergaard-Nielsen, Niels, The Intergenerational Transmission of Employers in Canada and Denmark. IZA Discussion Paper No. 5593, Available at SSRN: https://ssrn.com/abstract=1796588

Paul Bingley (Contact Author)

Aarhus University - National Centre for Register-Based Research ( email )

8000 Århus C, 8210
Denmark

Miles Corak

Statistics Canada ( email )

Family and Labour Studies
Ottawa, Ontario K1A 0T6
Canada
613-951-9047 (Phone)
613-951-5403 (Fax)

University of Ottawa

2292 Edwin Crescent
Ottawa, Ontario K2C 1H7
Canada

IZA Institute of Labor Economics

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

Niels Westergaard-Nielsen

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

IZA Institute of Labor Economics

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

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