Genetic ability and intergenerational earnings mobility

Liu, Haoming; Zeng, Jinli

doi:10.1007/s00148-007-0171-6

Cited by 30 publications

(17 citation statements)

References 20 publications

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“…For recent analysis, see for instance Anger & Heineck (2010) and Liu & Zeng (2009). offers the significant advantage of over-riding the attenuation bias that typically arises, because of classical measurement errors, when estimating equation 1 with long-term earnings replaced by current earnings (Solon 1992, Zimmerman 1992, Mazumder 2001. However, if the instrument has a direct effect on the child's outcome, than the TSIV estimates are biased and the direction of the bias depends on the sign of the direct effect.…”

Section: Estimation Methodsmentioning

confidence: 99%

Intergenerational earnings mobility in Japan among sons and daughters: levels and trends

2013

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Father's income is predicted on the basis of a rich set of variables including education, occupation and job characteristics and we discuss changes in the Japanese earnings structure for cohorts born between the early 1900s and the 1960s. Our main results indicate that the intergenerational income elasticity (IGE) for both sons and daughters, in Japan lies around .35, which is an intermediate value, by international standards. We discuss the sensitivity of the IGE to using either personal or family income as the income variable for both fathers and children and perform some robustness analysis with respect to the first-step specification and to the age selection rule for children. We also examine changes across cohorts in the IGE. Results indicate that intergenerational mobility has been roughly stable over the last decades. Lastly, we estimate the intergenerational correlation of earnings. JEL Classification:D1, D3, J3

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Section: Estimation Methodsmentioning

confidence: 99%

Intergenerational earnings mobility in Japan among sons and daughters: levels and trends

2013

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“…Second, some studies utilized adoptees. As genetic transmission is absent within adoptive families, genetic factors cannot cause the observed correlation between parental and child's education and occupation (Björklund, Lindahl & Plug, 2006;Liu & Zeng, 2009). And third, some studies investigated intergenerational effects with the use of instrumental variables, such as educational reforms (Black, Devereux & Salvanes, 2005;Oreopoulos, Page & Stevens, 2006).…”

Section: Introductionmentioning

confidence: 99%

Intergenerational transmission of educational attainment in adoptive families in the Netherlands

Scheeren

Das

Liefbroer

2017

Research in Social Stratification and Mobility

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To improve our understanding of the mechanisms underlying the strong association between family background and children's educational attainment, we examined intergenerational transmission within families where genetic transmission is absent. Specifically, we investigated the effect of parent's education and income on the educational attainment of their foreign-born adopted children. A large-scale register database was used, which contains information on the adoption status, educational level in secondary school and parental characteristics of all 15-year old children living in the Netherlands in the years 2011-2013. This study demonstrated that parental education mainly influenced their children's education when they were genetically related and that the influence was weak when they were adopted.Parental income, on the other hand, affected both adopted and biological children's educational attainment. Hence, the results suggested that genetic transmission and economic capital play a substantial role in intergenerational transmission of educational attainment.

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“…1 While great strides have been made to improve empirical estimates of income persistence (see Solon, 1999, for a review andMazumder, 2005), for a recent reassessment), much remains to be understood about the drivers or determinants of this persistence (Black & Devereux, 2011). The existing literature that has sought to understand the driving mechanisms of this persistence has mainly focused on mean effects such as the intergenerational elasticity of income (IGE) (Björklund, Lindahl, & Plug, 2006;Blanden, Gregg, & Macmillan, 2007;Bowles & Gintis, 2002;Cardak, Johnston, & Martin, 2013;Lefgren, Lindquist, & Sims, 2012;Liu & Zeng, 2009;Mayer & Lopoo, 2008;Richey & Rosburg, 2017;Shea, 2000). While informative, summary measures such as the IGE may conceal interesting details regarding differences in economic mobility at different points across the distribution (Black & Devereux, 2011).…”

Section: Introductionmentioning

confidence: 99%

Decomposing economic mobility transition matrices

Richey

Rosburg

2017

J of Applied Econometrics

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The intergenerational mobility literature has consistently found that the distribution of adult economic outcomes differ markedly depending on parental economic status, yet much remains to be understood about the drivers or determinants of this relationship. Existing literature on potential drivers focuses primarily on mean effects. To help provide a more complete picture of the potential forces driving economic persistence, we propose a method to decompose transition matrices and related indices. Specifically, we decompose differences between an estimated transition matrix and a benchmark transition matrix into portions attributable to differences in characteristics between individuals from different households (a composition effect) and portions attributable to differing returns to these characteristics between individuals from different households (a structure effect). We also incorporate a detailed decomposition, based on copula theory, that decomposes the composition effect into portions attributable to specific covariates and their interactions. We illustrate our method using data on white men from the 1979 National Longitudinal Survey of Youth. Estimation is based on an extended Mincer equation that includes cognitive and non-cognitive measures. To address the potential endogeneity of education, we implement an IV strategy that allows us to estimate causal effects and investigate the role of unobserved ability.JEL Classification: C14, C20, J31, J62

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Genetic ability and intergenerational earnings mobility

Abstract: Intergenerational correlations, Earnings, Wages, H50, I30, J62,

Cited by 30 publications

References 20 publications

Intergenerational earnings mobility in Japan among sons and daughters: levels and trends

Intergenerational earnings mobility in Japan among sons and daughters: levels and trends

Intergenerational transmission of educational attainment in adoptive families in the Netherlands

Decomposing economic mobility transition matrices

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