2006
DOI: 10.1111/j.1468-0297.2006.01105.x
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Intergenerational Mobility and Marital Sorting

Abstract: We use data from the German Socio-Economic Panel and the British Household Panel Survey to estimate the extent of intergenerational economic mobility in a framework that highlights the role played by assortative mating. We find that assortative mating plays an important role. On average about 40-50% of the covariance between parents' and own permanent family income can be attributed to the person to whom one is married. This effect is driven by strong spouse correlations in human capital, which are larger in G… Show more

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Cited by 133 publications
(101 citation statements)
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References 33 publications
(52 reference statements)
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“…This suggests a relatively low elasticity between the wife's own income and her parents-in-law family resources. Ermisch, Francesconi & Siedler (2006) report similar results for the UK.…”
Section: Cohort Trendssupporting
confidence: 75%
“…This suggests a relatively low elasticity between the wife's own income and her parents-in-law family resources. Ermisch, Francesconi & Siedler (2006) report similar results for the UK.…”
Section: Cohort Trendssupporting
confidence: 75%
“…The UK estimate, however, is surprisingly low compared to those of the Nordic countries, although it is almost identical to the UK estimate in Ermisch et al (2006). An important caveat is that these estimates are downward biased if hours worked of husbands respond to their wives' wage, or if splitting the sample according to single status imparts bias; see the discussion in section 3.…”
mentioning
confidence: 74%
“…Moreover, the study finds that the individual earnings of husbands and wives are equally highly correlated with the incomes of their own parents as they are with incomes of their parents-in-law. In the same spirit, Ermisch et al (2006) argue that assortative matingi.e., the tendency of men and women with similar socioeconomic characteristics to marryplays an important role in explaining intergenerational earnings persistence in Germany and Britain, and assert that 40 to 50 percent of the covariance between parental and own permanent family incomes can be attributed to the person to whom one is married. Hence, marital sorting seems to play a key role in shaping intergenerational family income persistence.…”
Section: Introductionmentioning
confidence: 99%
“…Strikingly, they also show that individual earnings of husbands and wives are as highly correlated with the incomes of their in-laws as with the incomes of their own parents. Ermisch et al (2006) conclude that about 40% of family income persistence in the U.K. and Germany results from assortative mating.…”
Section: Estimates For Family Earningsmentioning
confidence: 99%