Template-type: ReDif-Paper 1.0
Author-Name: Büchner Charlotte 
Author-Name: Cörvers Frank 
Author-Name: Traag Tanja 
Author-Name: Velden Rolf van der
Author-workplace-name: METEOR
Title: How do Education, Cognitive Skills, Cultural and Social Capital Account for Intergenerational Earnings Persistence? Evidence from the Netherlands
Abstract: This study analyzes four different transmission mechanisms, through which father’s earnings affectson’s earnings: the educational attainment, cognitive skills, the cultural capital of the familyand the social capital in the neighborhood. Using a unique data set that combines panel data froma birth cohort with earnings data from a large nationwide income survey and national tax files,our findings show that cognitive skills and schooling of the son account for 50% of the father-sonearnings elasticity. Education by far accounts for the largest part, while cognitive skills mainlywork indirectly through educational attainment. Social capital of the neighborhood and culturalcapital of the parents account for an additional 6% of the intergeneration income persistence.From these two additional mechanisms, social capital appears to play a stronger role than thecultural capital of the parents. This means that 44%  of the intergenerational persistence is dueto other unobserved characteristics for example personality traits or spillover effects of familyassets.
Keywords: education, training and the labour market; 
Series: Research Memoranda
Creation-Date: 2012
Number: 028
File-URL: http://arnop.unimaas.nl/show.cgi?fid=25901
File-Format: application/pdf
File-Size: 447095
Handle: RePEc:unm:umamet:2012028