Working Paper

He's a Chip Off the Old Block - The Persistence of Occupational Choices Across Generations

Bodo Knoll, Nadine Riedel, Eva Schlenker
CESifo, Munich, 2013

CESifo Working Paper No. 4428

The purpose of this paper is to assess intergenerational occupational mobility in Germany. Using data from the Socioeconomic Panel (SOEP), we find a high persistence of occupational choices across fathers and children. To separate effects related to parental advice and influence (nurture) from genetic factors (nature), we determine the persistence separately for children who grew up with their biological fathers and those who did not. The results suggest that nurture-related effects explain a significant fraction of the observed correlation of fathers’ and children’s occupational choices. We discuss policy implications that follow from the analysis.

CESifo Category
Economics of Education
Labour Markets
Public Finance
Keywords: occupational choice, German SOEP, parental educational investment
JEL Classification: J240, J620