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The Intergenerational Persistence of Human Capital: An Empirical Analysis of Four Generations

Author

Listed:
  • Lindahl, Mikael

    (University of Gothenburg)

  • Palme, Mårten

    (Stockholm University)

  • Sandgren Massih, Sofia

    (Uppsala University)

  • Sjögren, Anna

    (IFAU)

Abstract
Most previous studies of intergenerational transmission of human capital are restricted to two generations – parents and their children. In this study we use a Swedish data set which enables us link individual measures of lifetime earnings for three generations and data on educational attainments of four generations. We investigate to what extent estimates based on income data from two generations accurately predicts earnings persistence beyond two generations. We also do a similar analysis for intergenerational persistence in educational attainments. We find two-generation studies to severely under-predict intergenerational persistence in earnings and educational attainment over three generations. Finally, we use our multigenerational data on educational attainment to estimate the structural parameters in the Becker-Tomes model. Our results suggest a small or no causal effect of parental education on children's educational attainment.

Suggested Citation

  • Lindahl, Mikael & Palme, Mårten & Sandgren Massih, Sofia & Sjögren, Anna, 2012. "The Intergenerational Persistence of Human Capital: An Empirical Analysis of Four Generations," IZA Discussion Papers 6463, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6463
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    References listed on IDEAS

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    8. Helena Holmlund & Mikael Lindahl & Erik Plug, 2011. "The Causal Effect of Parents' Schooling on Children's Schooling: A Comparison of Estimation Methods," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 615-651, September.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Sverige: det jämlika klassamhället?
      by Jonas Vlachos in Ekonomistas on 2012-12-21 18:29:36

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    Cited by:

    1. Mikael Lindahl & Mårten Palme & Sofia Sandgren-Massih & Anna Sjögren, 2014. "A Test of the Becker-Tomes Model of Human Capital Transmission Using Microdata on Four Generations," Journal of Human Capital, University of Chicago Press, vol. 8(1), pages 80-96.
    2. Romeu, Andrés & Collado, M. Dolores & Ortuño Ortin, Ignacio, 2013. "Long-run intergenerational social mobility and the distribution of surnames," UMUFAE Economics Working Papers 36768, DIGITUM. Universidad de Murcia.
    3. Carol H. SHIUE, 2016. "A Culture of Kinship: Chinese Genealogies as a Souce for Research in Demographic Economics," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 82(4), pages 459-482, December.
    4. Martin Dribe & Jonas Helgertz, 2015. "The lasting impact of grandfathers: class, occupational status, and earnings over three generations (Sweden, 1815-2010)," Working Papers 15027, Economic History Society.
    5. Andreella, Claudia & Karlsson, Martin & Nilsson, Therese & Westphal, Matthias, 2015. "The long shadows of past insults intergenerational transmission of health over 130 years," Ruhr Economic Papers 571, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Stuhler, Jan, 2012. "Mobility Across Multiple Generations: The Iterated Regression Fallacy," IZA Discussion Papers 7072, Institute of Labor Economics (IZA).
    7. Piraino, Patrizio & Muller, Sean & Cilliers, Jeanne & Fourie, Johan, 2013. "The transmission of longevity across generations: The case of the settler Cape Colony," SALDRU Working Papers 113, Southern Africa Labour and Development Research Unit, University of Cape Town.
    8. Henrekson, Magnus & Lyssarides, Odd & Ottosson, Jan, 2016. "The Social Background of Elite Executives: The Swedish Case," Working Paper Series 1138, Research Institute of Industrial Economics, revised 12 Jul 2021.
    9. Nina Boberg-Fazlić & Paul Sharp, 2018. "North and south: long-run social mobility in England and attitudes toward welfare," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 12(2), pages 251-276, May.
    10. Richter, André & Robling, Per Olof, 2013. "Multigenerational e ffects of the 1918-19 influenza pandemic in Sweden," Working Paper Series 5/2013, Stockholm University, Swedish Institute for Social Research.
    11. Sam Asher & Paul Novosad & Charlie Rafkin, 2018. "Partial Identification of Expectations with Interval Data," Papers 1802.10490, arXiv.org.
    12. Gary Solon, 2013. "Theoretical Models of Inequality Transmission across Multiple Generations," NBER Working Papers 18790, National Bureau of Economic Research, Inc.
    13. Clark, Gregory & Cummins, Neil, 2013. "Intergenerational mobility in England, 1858-2012. Wealth, surnames, and social mobility," Economic History Working Papers 54513, London School of Economics and Political Science, Department of Economic History.
    14. Nybom, Martin & Stuhler, Jan, 2013. "Interpreting Trends in Intergenerational Income Mobility," IZA Discussion Papers 7514, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    intergenerational income mobility; human capital transmission; multigenerational income mobility;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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