Inequality across three and four generations in Egalitarian Sweden: 1st and 2nd cousin correlations in socio-economic outcomes ?

This paper estimates intergenerational associations in outcomes across more than two generations using cousin correlations. These correlations account for both observed and unobserved factors that cousins share, i.e., the joint influence of family and the community they are exposed to. The results show 1st cousin correlations in GPA, cognitive ability, and years of education above .15. For occupational prestige, the correlations were found to be close to .10. Accounting for detailed parental socio-economic characteristics reduces the correlations by merely one third to one half, which suggest that grandparents contribute over and above parents. For 2nd cousins, sample restriction allows only the study of correlations in 9th grade GPA. The 2nd cousin correlation is estimated to .07 unadjusted and .05 after adjusting for detailed parental characteristics. For 1st and 2nd cousins of grandparents with great economic wealth, the correlations double or triple, and remain very large even after parental characteristics are controlled for. In sum, this indicates strong persistence of inequality across at least four generations in contemporary Sweden.