The Transmission of Inequality Across Multiple Generations: Testing Recent Theories with Evidence from Germany

36 Pages Posted: 5 Mar 2018

See all articles by Sebastian Braun

Sebastian Braun

Kiel Institute for the World Economy - IFW

Jan Stuhler

University College London

Date Written: March 2018

Abstract

This article shows that across multiple generations, the persistence of occupational and educational attainment in Germany is larger than estimates from two generations suggest. We consider two recent interpretations. First, we assess Gregory Clark's hypotheses that the true rate of intergenerational persistence is higher than the observed rate, as high as 0.75, and time‐invariant. Our evidence supports the first but not the other two hypotheses. Second, we test for independent effects of grandparents. We show that the coefficient on grandparent status is positive in a wide class of Markovian models and present evidence against its causal interpretation.

Suggested Citation

Braun, Sebastian Till and Stuhler, Jan, The Transmission of Inequality Across Multiple Generations: Testing Recent Theories with Evidence from Germany (March 2018). The Economic Journal, Vol. 128, Issue 609, pp. 576-611, 2018. Available at SSRN: https://ssrn.com/abstract=3133438 or http://dx.doi.org/10.1111/ecoj.12453

Sebastian Till Braun (Contact Author)

Kiel Institute for the World Economy - IFW ( email )

United States

Jan Stuhler

University College London ( email )

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