Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 758: Dynastic Human Capital, Inequality and Intergenerational Mobility
Adrian Adermon, Mikael Lindahl () and Mårten Palme
Additional contact information
Adrian Adermon: Institute for Evaluation of Labor Market and Education Policy (IFAU), UCLS and UCFS
Mikael Lindahl: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Mårten Palme: Department of Economics, Stockholm University and IZA
Abstract: We study the importance of the extended family – the dynasty – for the persistence in inequality across generations. We use data including the entire Swedish population, linking four generations. This data structure enables us to identify parents’ siblings and cousins, their spouses, and the spouses’ siblings. Using various human capital measures, we show that traditional parent-child estimates of intergenerational persistence miss almost one-third of the persistence found at the dynasty level. To assess the importance of genetic links, we use a sample of adoptees. We then find that the importance of the extended family relative to the parents increases.
Keywords: Intergenerational mobility; extended family; dynasty; human capital
47 pages, April 2019
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