Earnings mobility across three generations of natives in Finland: A comparison of Finnish and Swedish speakers

Abstract

We examine earnings mobility across three generations in Finland and compare two native groups with equal constitutional rights, Finnish speakers and Swedish speakers. Based on register data of the total population, we employ rank-rank regressions to assess the degree to which earnings in men relate to their fathers’ and paternal grandfathers’ earnings. We estimate regressions on the national level and in regions with Swedish-speaking population. The earnings rank of the grandfather is found to play a modest role net of the earnings rank of the father. Earnings mobility is higher in regions where the numerical minority of Swedish speakers is settled, but the two ethnolinguistic groups differ only in the Helsinki capital region, where earnings mobility is higher among the Swedish speakers. Less than one fifth of this ethnolinguistic gradient can be attributed to educational and other observed differences. These findings suggest that, in a geographically concentrated and well-performing ethnolinguistic group, social integration and networks may play a role in providing opportunities independently of parents’ achievements.