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Three-generation Mobility in the United States, 1850-1940: The Role of Maternal and Paternal Grandparents

Author

Listed:
  • Claudia Olivetti

    (Boston College
    NBER)

  • M. Daniele Paserman

    (Boston University
    NBER)

  • Laura Salisbury

    (York University
    NBER)

Abstract

This paper estimates intergenerational elasticities across three generations in the United States in the late 19th and early 20th centuries. We extend the methodology in Olivetti and Paserman (2015) to explore the role of maternal and paternal grandfathers for the transmission of economic status to grandsons and granddaughters. We document three main findings. First, grandfathers matter for income transmission, above and beyond their effect on fathers’ income. Second, the socio-economic status of grandsons is influenced more strongly by paternal grandfathers than by maternal grand- fathers. Third, maternal grandfathers are more important for granddaughters than for grandsons, while the opposite is true for paternal grandfathers. We present a model of multi-trait matching and inheritance that can rationalize these findings.

Suggested Citation

  • Claudia Olivetti & M. Daniele Paserman & Laura Salisbury, 2016. "Three-generation Mobility in the United States, 1850-1940: The Role of Maternal and Paternal Grandparents," Boston College Working Papers in Economics 903, Boston College Department of Economics.
    • Handle: RePEc:boc:bocoec:903
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    Cited by:

    1. Adrian Adermon & Mikael Lindahl & Daniel Waldenström, 2018. "Intergenerational Wealth Mobility and the Role of Inheritance: Evidence from Multiple Generations," Economic Journal, Royal Economic Society, vol. 128(612), pages 482-513, July.
    2. Inwood, Kris & Minns, Chris & Summerfield, Fraser, 2019. "Occupational income scores and immigrant assimilation. Evidence from the Canadian census," Explorations in Economic History, Elsevier, vol. 72(C), pages 114-122.
    3. Simon Clark, 2020. ""You're Just My Type!" Matching and Payoffs When Like Attracts Like," Edinburgh School of Economics Discussion Paper Series 295, Edinburgh School of Economics, University of Edinburgh.
    4. Eiji Yamamura, 2021. "View about consumption tax and grandchildren," Papers 2102.04658, arXiv.org.
    5. Ran Abramitzky & Leah Platt Boustan & Elisa Jácome & Santiago Pérez, 2019. "Intergenerational Mobility of Immigrants in the US over Two Centuries," NBER Working Papers 26408, National Bureau of Economic Research, Inc.
    6. Shelly Lundberg & Aloysius Siow, 2017. "Canadian contributions to family economics," Canadian Journal of Economics, Canadian Economics Association, vol. 50(5), pages 1304-1323, December.
    7. Alberto Alesina & Sebastian Hohmann & Stelios Michalopoulos & Elias Papaioannou, 2021. "Intergenerational Mobility in Africa," Econometrica, Econometric Society, vol. 89(1), pages 1-35, January.
    8. Yu-Wei Luke Chu & Ming-Jen Lin, 2020. "Intergenerational earnings mobility in Taiwan: 1990–2010," Empirical Economics, Springer, vol. 59(1), pages 11-45, July.
    9. Jørgen Modalsli & Kelly Vosters, 2024. "Spillover Bias in Multigenerational Income Regressions," Journal of Human Resources, University of Wisconsin Press, vol. 59(3), pages 743-776.
    10. Andra C. Ghent & Marianna Kudlyak, 2015. "Intergenerational Linkages in Household Credit," Working Paper 15-14, Federal Reserve Bank of Richmond.
    11. John Komlos, 2016. "Unemployment in a Just Economy," CESifo Working Paper Series 5974, CESifo.
    12. Martin Nybom & Jan Stuhler, 2019. "Steady-state assumptions in intergenerational mobility research," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(1), pages 77-97, March.
    13. Teresa Barbieri & Francesco Bloise & Michele Raitano, 2020. "Intergenerational Earnings Inequality: New Evidence From Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(2), pages 418-443, June.
    14. Samuel Bazzi & Martin Fiszbein & Mesay Gebresilasse, 2020. "Frontier Culture: The Roots and Persistence of “Rugged Individualism” in the United States," Econometrica, Econometric Society, vol. 88(6), pages 2329-2368, November.
    15. Chu, Luke Yu-Wei & Lin, Ming-Jen, 2016. "Economic development and intergenerational earnings mobility: Evidence from Taiwan," Working Paper Series 19495, Victoria University of Wellington, School of Economics and Finance.
    16. Javier Cortes Orihuela & Juan D. Díaz & Pablo Gutiérrez Cubillos & Pablo A. Troncoso, 2024. "Everything’s not lost: revisiting TSTSLS estimates of intergenerational mobility in developing countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(1), pages 66-94, February.
    17. Ian Lundberg, 2020. "Does Opportunity Skip Generations? Reassessing Evidence From Sibling and Cousin Correlations," Demography, Springer;Population Association of America (PAA), vol. 57(4), pages 1193-1213, August.
    18. Anke Becker, 2019. "On the Economic Origins of Restrictions on Women's Sexuality," CESifo Working Paper Series 7770, CESifo.

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    Keywords

    Intergenerational Mobility; Multiple Generations; Gender; Marriage; Assortative Mating;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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