Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/316922 
Year of Publication: 
2025
Series/Report no.: 
CESifo Working Paper No. 11808
Publisher: 
CESifo GmbH, Munich
Abstract: 
Children tend to choose the same occupations as their parents. We examine the implications of this tendency for talent allocation and intergenerational mobility. Using Swedish data on skills and personality traits, we estimate a general equilibrium Roy model with unequal occupational access depending on parental background. Equalizing access halves occupational following and increases intergenerational earnings mobility by a third, benefiting low-income sons most. Exploiting long-run declines in fathers' occupations, we find that reduced following improves sons' skill-matching and raises earnings, aligning with our model. Our results suggest that facilitating more occupational mobility would increase intergenerational income mobility without reducing output.
Subjects: 
occupational mobility
misallocation
roy model
comparative advantage.
JEL: 
E24
J24
J62
Document Type: 
Working Paper
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