Why Do Wealthy Parents Have Wealthy Children?

S-Tier
Journal: Journal of Political Economy
Year: 2021
Volume: 129
Issue: 3
Pages: 703 - 756

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We show that family background matters significantly for children’s accumulation of wealth and investor behavior as adults, even when removing the genetic connection between children and the parents raising them. The analysis is made possible by linking Korean-born children who were adopted at infancy by Norwegian parents to a population panel data set with detailed information on wealth and socioeconomic characteristics. The mechanism by which these Korean-Norwegian adoptees were assigned to adoptive families is known and effectively random. This mechanism allows us to estimate the causal effects from an adoptee being raised in one type of family versus another.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/712446
Journal Field
General
Author Count
3
Added to Database
2026-01-25