Intergenerational income mobility – top incomes and assortative mating in Denmark

M. Azhar Hussain, Jens Bonke, Martin D. Munk

Research output: Working paperResearch

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Abstract

This article investigates intergenerational income mobility among top-income people in Denmark focusing on the impact of assortative mating. Earnings and capital income are the variables of interest included in the analyzes testing the hypothesis that both wealth and social heritage are transferred from rich parents to their children. Using administrative registers allow us to look at small fractions of the populations, i.e. dynasties, and to distinguish between sons and
daughters and to observe their eventual spouses’ incomes. We find that intergenerational mobility is lower in the top, in particular, when including capital income in the total income. Also we find the marriage match has a stronger impact on the family-to-family income transfer in the top of the income distribution where the daughter marries a man more like her father than herself. The highest persistence, however, is between first- and second-generation households, especially between father and mother’s aggregated incomes and that of their son and daughter-in-law’s with a correlation close to a half.
Original languageEnglish
Place of PublicationAalborg Universitet
Pages1-38
Number of pages38
ISBN (Print)978-87-92174-19-2
ISBN (Electronic)978-87-92174-19-2
Publication statusPublished - 19 Nov 2011
SeriesWorking Papers from Department of Political Science
Number2011:2
ISSN1396-3503

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