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Transmission of Human Capital across Four Generations: Intergenerational Correlations and a Test of the Becker-Tomes Model
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Stockholms universitet.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Uppsala University, Units outside the University, Office of Labour Market Policy Evaluation.
2011 (English)Report (Other academic)
Abstract [en]

Most previous studies on intergenerational transmission of human capital are restricted to two generations - between the parent and the child generation. In this paper we investigate if there is an independent effect of the grandparent and the great grandparent generations in this process. We use a dataset where we are able to link individual measures of life time earnings for three generation and data on educational attainments of four generations. We first do conventional regressions and transition matrices for life time earnings measures and educational attainments adding variables for the grandparent and great grandparent generations, respectively. We find that grandparents and even great grandparents significantly influence earnings and education. We then estimate the so called Becker-Tomes model using the educational attainment of the great grandparent generation as an instrumental variable. We fail to find support for the model's predictions. 

Place, publisher, year, edition, pages
Uppsala: Department of Economics, Uppsala University , 2011. , p. 27
Series
Working paper / Department of Economics, Uppsala University (Online), ISSN 1653-6975 ; 2011:18
Keyword [en]
Intergenerational income mobility, earnings distribution, income inequality
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:uu:diva-164682OAI: oai:DiVA.org:uu-164682DiVA, id: diva2:468970
Available from: 2012-01-04 Created: 2011-12-22 Last updated: 2012-01-04Bibliographically approved

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Lindahl, MikaelSandgren Massih, SofiaSjögren, Anna
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CiteExportLink to record
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Citation style
  • apa
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