Dynastic Human Capital, Inequality, and Intergenerational Mobility

We estimate long-run intergenerational persistence in human capital using information on outcomes for the extended family: dynasty. A dataset including entire Swedish population, linking four generations, allows us to identify parents’ siblings and cousins, their spouses, spouses’ siblings. Using various measures, we show that traditional parent-child estimates underestimate by at least one-third. By adding more distant ancestors, almost all of is captured parental generation. Data adoptees one- third long-term attributed environmental factors. (JEL I24, I26, J12, J24, J62)