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Transmission of Human Capital across Four Generations: Intergenerational Correlations and a Test of the Becker-Tomes Model

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  • Lindahl, Mikael

    (Uppsala Center for Labor Studies)

  • Palme, Mårten

    (Department of Economics, Stockholm University, SE-106 91 Stockholm, Sweden)

  • Sandgren Massih, Sofia

    (Uppsala Center for Labor Studies)

  • Sjögren, Anna

    (IFAU, Box 513, SE-751 20 Uppsala, Sweden)

Abstract

Most previous studies on intergenerational transmission of human capital are restricted to two generations - between the parent and the child generation. In this paper we investigate if there is an independent effect of the grandparent and the great grandparent generations in this process. We use a dataset where we are able to link individual measures of life time earnings for three generation and data on educational attainments of four generations. We first do conventional regressions and transition matrices for life time earnings measures and educational attainments adding variables for the grandparent and great grandparent generations, respectively. We find that grandparents and even great grandparents significantly influence earnings and education. We then estimate the so called Becker-Tomes model using the educational attainment of the great grandparent generation as an instrumental variable. We fail to find support for the models predictions.

Suggested Citation

  • Lindahl, Mikael & Palme, Mårten & Sandgren Massih, Sofia & Sjögren, Anna, 2011. "Transmission of Human Capital across Four Generations: Intergenerational Correlations and a Test of the Becker-Tomes Model," Working Paper Series, Center for Labor Studies 2011:21, Uppsala University, Department of Economics.
    • Handle: RePEc:hhs:uulswp:2011_021
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    1. Mikael Lindahl & Mårten Palme & Sofia Sandgren Massih & Anna Sjögren, 2015. "Long-Term Intergenerational Persistence of Human Capital: An Empirical Analysis of Four Generations," Journal of Human Resources, University of Wisconsin Press, vol. 50(1), pages 1-33.

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    More about this item

    Keywords

    Intergenerational income mobility; earnings distribution; income inequality;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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