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Working Paper
Sibling similarities, differences and economic inequality
I use improved statistical approaches and much larger samples than previous studies to provide more robust estimates of the correlation in economic outcomes among siblings. A key finding is that more than half the variance in log wages among men is due to differences in family and community background. Slightly smaller estimates in the 0.45 to 0.5 range are found for earnings and family income. For women, the sibling correlation in family income is the same as that found for men. I estimate that the sibling correlation in years of schooling and AFQT test scores is higher than 0.6. In ...
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What similarities between siblings tell us about inequality in the U.S.
The author finds that about half of earnings inequality in the U.S. can be explained by family and community influences during childhood. He also finds that these influences have become more important in recent decades.