Intergenerational Effects in Sweden: What Can We Learn from Adoption Data?

57 Pages Posted: 19 Jul 2004

See all articles by Anders Bjorklund

Anders Bjorklund

Stockholm University; IZA Institute of Labor Economics

Mikael Lindahl

University of Bonn; IZA Institute of Labor Economics

Erik Plug

University of Amsterdam - Amsterdam School of Economics (ASE); Tinbergen Institute; IZA Institute of Labor Economics

Date Written: June 2004

Abstract

We explore the adoption data approach to estimating causal effects of parental education and income on the same outcomes of their children. Thanks to a data set drawn from Swedish population registers with detailed information on biological background and history of adoptees, we can test basic assumptions that the adoption strategy relies on. We find that the adoption method survives these tests surprisingly well. Our empirical results suggest that one more year of either mother's or father's education raises children's education by about 0.1 year. Our estimated income elasticities are around 0.1.

Keywords: intergenerational effects, income, education, adoption data

JEL Classification: I20, J30, J62

Suggested Citation

Bjorklund, Anders and Lindahl, Mikael and Plug, Erik, Intergenerational Effects in Sweden: What Can We Learn from Adoption Data? (June 2004). IZA Discussion Paper No. 1194. Available at SSRN: https://ssrn.com/abstract=565401

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

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

Erik Plug

University of Amsterdam - Amsterdam School of Economics (ASE) ( email )

Roetersstraat 11
1018 WB Amsterdam
Netherlands
+31 20 5254311 (Phone)
+31 20 5254310 (Fax)

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

IZA Institute of Labor Economics

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

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