Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 539: Occupational Choice and Incentives: The Role of Family Background

Anna Sjögren ()
Additional contact information
Anna Sjögren: The Research Institute of Industrial Economics, Postal: P.O. Box 55665, SE-102 15 Stockholm, Sweden

Abstract: A model of occupational choice and human capital investment is developed and tested. The model allows family background to influence occupational choice via access to economic resources, differences in costs of schooling, and ability uncertainty. The model predicts that people are more sensitive to economic incentives when considering occupations that are different from the parental occupation. It also predicts that the occupational choice of individuals from poor background is more sensitive to economic incentives than the occupational choice of well off individuals. These implications are confirmed on Swedish data using a mixed multinomial logit framework, explicitly accounting for unobserved heterogeneity.

Keywords: Economic incentives; Family background; Intergenerational mobility; Mixed multinomial logit; Occupational choice

JEL-codes: C25; J24; J62

27 pages, September 27, 2000

Full text files

iuiwop0539.pdf PDF-file Full text

Download statistics

Questions (including download problems) about the papers in this series should be directed to Elisabeth Gustafsson ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:12:18.