Dynastic Human Capital, Inequality and Intergenerational Mobility

48 Pages Posted: 21 May 2019

See all articles by Adrian Adermon

Adrian Adermon

Uppsala University

Mikael Lindahl

University of Bonn; IZA Institute of Labor Economics

Marten Palme

Stockholm University - Department of Economics; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Abstract

We study the importance of the extended family – the dynasty – for the persistence in inequality across generations. We use data including the entire Swedish population, linking four generations. This data structure enables us to identify parents' siblings and cousins, their spouses, and the spouses' siblings. Using various human capital measures, we show that traditional parent-child estimates of intergenerational persistence miss almost one-third of the persistence found at the dynasty level. To assess the importance of genetic links, we use a sample of adoptees. We then find that the importance of the extended family relative to the parents increases.

Keywords: intergenerational mobility, extended family, dynasty, human capital

JEL Classification: I24, J62

Suggested Citation

Adermon, Adrian and Lindahl, Mikael and Palme, Marten, Dynastic Human Capital, Inequality and Intergenerational Mobility. IZA Discussion Paper No. 12300. Available at SSRN: https://ssrn.com/abstract=3390290

Adrian Adermon (Contact Author)

Uppsala University ( email )

Box 513
Uppsala, 751 20
Sweden

Mikael Lindahl

University of Bonn ( email )

Postfach 2220
Bonn, D-53012
Germany

IZA Institute of Labor Economics

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

Marten Palme

Stockholm University - Department of Economics ( email )

Universitetsvägen 10 A
House A, floor 4 and 7
Frescati, Stockholm
Sweden
+46163307 (Phone)

IZA Institute of Labor Economics

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

Register to save articles to
your library

Register

Paper statistics

Downloads
3
Abstract Views
31
PlumX Metrics