Advertisement

Journal of Population Economics

, Volume 15, Issue 4, pp 757–772 | Cite as

Brother correlations in earnings in Denmark, Finland, Norway and Sweden compared to the United States

  • Anders Björklund
  • Tor Eriksson
  • Markus Jäntti
  • Oddbjörn Raaum
  • Eva Österbacka

Abstract.

The correlation in economic status among siblings is a useful “omnibus measure” of the overall impact of family and community factors on adult economic status. In this study we compare brother correlations in long-run (permanent) earnings between the United States, on one hand, and the Nordic countries (Denmark, Finland, Norway and Sweden) on the other. Our base case results, based on very similar sample criteria and definitions for all countries, show that this correlation is above 0.40 in the United States and in the range 0.14–0.26 in the Nordic countries. Even though these results turn out to be somewhat sensitive to some assumptions that have to be made, we conclude that the family and community factors are more important determinants of long-run earnings in the United States than in the Nordic countries.

JEL classification: D1, D3, J62 
Key words: Intergenerational mobility, earnings inequality, long-run earnings 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Springer-Verlag Berlin Heidelberg 2002

Authors and Affiliations

  • Anders Björklund
    • 1
  • Tor Eriksson
    • 2
  • Markus Jäntti
    • 3
  • Oddbjörn Raaum
    • 4
  • Eva Österbacka
    • 5
  1. 1.SOFI, Stockholm University, SE-106 91 Stockholm, Sweden and IZA, Bonn (Fax: +46-8-154670; e-mail: anders@sofi.su.se)SE
  2. 2.Aarhus School of Business, DK-8210 Århus V, Denmark (Fax: +45-86-247075; e-mail: tor@asb.dk)DK
  3. 3.Department of Economics, University of Tampere, FIN-33014 Tampere, Finland (Fax: +358-3-2157254; e-mail: mjantti@abo.fi)FI
  4. 4.Ragnar Frisch Centre for Economic Research, Gaustadallén 21, N-0349 Oslo, Norway (Fax: +47-22-958825; e-mail: oddbjorn.raaum@frisch.uio.no)NO
  5. 5.Åbo Akademi, FIN-20500 Åbo, Finland (Fax: +358-2-215-4677; e-mail: eva.osterbacka@abo.fi)FI

Personalised recommendations