We investigate the role of firms in intergenerational mobility by decomposing the intergenerational elasticity of earnings (IGE) into firm-IGE and individual-IGE using a two-way fixed effects framework. Using data from Israel, we find that the firm component is responsible for 22% of the overall...

This paper studies the association between the unemployment experience of fathers and their sons. Based on German survey data that cover the last decades we find significant positive correlations. Using instrumental variables estimation and the Gottschalk (1996) method we investigate to what...

We calibrate a sequence of four nested models to study the dynamics of wealth accumulation. Individuals maximize a utility function whose arguments are consumption and investment. They desire to accumulate wealth for its own sake - this is not a life-cycle model. A competitive firm produces a...

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...

The paper paper estimates long run social mobility in Australia 1870-2017 tracking the status of rare surnames. The status information includes occupations from electoral rolls, and records of degrees awarded by Melbourne and Sydney universities. Status persistence was strong throughout, with an...

Empirical findings suggest a positive correlation between inequality and social immobility, a phenomenon coined the Gatsby curve. However, complete explanations of the phenomenon have not yet been proposed. This paper answers two questions: What are Gatsby curves? When do they exist? We build a...

The extensive literature on intergenerational mobility highlights the importance of family linkages but fails to provide credible evidence about the underlying family factors that drive the pervasive correlations. We employ a unique combination of Dutch survey and registry data that links math...

We characterize intergenerational mobility in Germany using census data on educational attainment and parental income for 526,000 children. Our measure of educational attainment is the A-Level degree, a requirement for access to university. A 10 percentile increase in the parental income rank is...

This paper analyzes the roles of innate talent versus family background in shaping intergenerational mobility and social welfare under different education systems. We establish an overlapping-generations model in which the allocation of workforce between a high-paying skilled labor sector and a...

We apply a partial identification analysis using comprehensive Norwegian register data to investigate the causal effect of father’s income on child income. We find a strong association between the incomes of fathers and children. The causal effect, however, equals at least 1% and at most 51%...