Abstract We propose a multivariate approach for the estimation of intergenerational transition matrices. Our methodology is grounded on assumption that individuals’ social status unobservable and must be estimated. In this framework, parents offspring are clustered basis observed levels income occupational categories, thus avoiding any discretionary rule in definition class boundaries. The resu...

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-thi...