Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/173019
Authors: 
Bingley, Paul
Cappellari, Lorenzo
Tatsiramos, Konstantinos
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper 6743
Abstract: 
Using longitudinal data based on administrative registers for the population of Danish men we develop a model which accounts for the joint earnings dynamics of siblings and youth community peers. We are the first to decompose the sibling correlation of permanent earnings into family and community effects allowing for life-cycle dynamics; finding that family is the most important factor influencing earnings inequality over the life cycle. Community background explains a substantial share of the sibling correlation of earnings early in the working life, but its importance diminishes over time and becomes negligible after age 30.
Subjects: 
sibling correlation
neighborhoods
schools
long-term inequality
JEL: 
D31
J62
Document Type: 
Working Paper

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