Template-Type: ReDIF-Paper 1.0
Author-Name: Paul Bingley
Author-X-Name-First: Paul
Author-X-Name-Last: Bingley
Author-Name: Lorenzo Cappellari
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Cappellari
Author-Email: lorenzo.cappellari@unicatt.it
Author-Workplace-Name: Università Cattolica del Sacro Cuore
Author-Workplace-Name: Dipartimento di Economia e Finanza, Università Cattolica del Sacro Cuore
Author-Name: Konstantinos Tatsiramos
Author-X-Name-First: Konstantinos 
Author-X-Name-Last: Tatsiramos
Title: Family, Community and Long-Term Earnings Inequality
Abstract: Correlations between the earnings of siblings reflect shared family and community
background, but evidence is mixed on the relative magnitudes of these influences. We
estimate long run earnings correlations between brothers, school mates and teenage neighbors
jointly in a unified framework. Using administrative data on the Danish population we find
that: (1) family is by far the most relevant factor that shapes long-term earnings; (2) the
contribution of neighborhood and school quality on long-term earnings is overestimated if the
family component is ignored, and becomes negligible and not significantly different from zero
by age 30; and (3) the importance of family declines over the life-cycle.
Length: 40
Creation-Date: 2014-10
File-URL: http://dipartimenti.unicatt.it/economia-finanza-def17.pdf
File-Format: Application/pdf
File-Function: First version, 2014
Number: def17
Classification-JEL: D31, J62. 
Keywords: Sibling correlations; Neighborhoods; Schools; Life-cycle earnings; Inequality
Handle: RePEc:ctc:serie1:def17