The Link between Family Background and Later Lifetime Income: How Does the UK Compare with Other Countries?

Abstract

The link between family background and labour market outcomes is an issue of great academic, social and political concern. It is frequently claimed that such intergenerational associations are stronger in Britain than in other countries. But is this really true? I investigate this issue by estimating the link between parental education and later lifetime income, using three cross-nationally comparable data sets covering more than 30 countries. My results suggest that the UK is broadly in the middle of the cross-country rankings, with intergenerational associations notably stronger than in Scandinavia but weaker than in eastern Europe. Overall, I find limited support for claims that family background is a greater barrier to economic success in Britain than in other parts of the developed world.