Opportunities, preferences and incomes
2005 (English)Report (Other academic)
The distinction between circumstances that constrain an individual’s opportunities and the individual choices also affecting a particular outcome is the main idea of theories of equality of opportunity. In this study, equality of opportunity is analyzed for Swedish data using a large set of variables indicating different circumstances likely to affect an individual’s opportunities. A semiparametric model is estimated to allow for a possible nonlinear relation between parental income and the income of the adult child. The reason is a hypothesis that a constrained investment behavior would make the relationship nonlinear. The results indicate significant inequality of opportunities. However, they do not indicate a nonlinear relationship between parental income and the income of the adult child. Thus, the hypothesis that low income families will have a constrained investment behavior in human capital formation is brought into question as the explanation of intergenerational income correlation in Sweden.
Place, publisher, year, edition, pages
Umeå: Umeå universitet , 2005. , 43 p.
, Umeå economic studies, ISSN 1403-4824 ; 649
equality of opportunity, intergenerational income mobility, preferences, tastes, semiparametric estimation
IdentifiersURN: urn:nbn:se:umu:diva-4527OAI: oai:DiVA.org:umu-4527DiVA: diva2:143667
Distributor:Nationalekonomi, 90187, Umeå