Complementing prior research on income and educational mobility, we examine the intergenerational transmission of cognitive abilities. We find that individuals’ cognitive skills are positively related to their parents’ abilities, despite controlling for educational attainment and family...

This paper is the first to analyze the impact of family background on permanent earnings based on sibling correlations in Germany and to provide a cross-country comparison of Germany, Denmark, and USA. The main findings are that family and community background has a stronger influence on...