Globe and Mail: "Making it to the top 1%, with a little help from Dad"

[kevinbgoode]

a very interesting short article which outlines how the children of wealthier parents tend to more frequently secure an upwardly mobile position within the same business. . .

The most popular way to find a job is through family and friends. That holds true for all of us, but it is immensely more likely for the kids of the very rich. Look at the graph below from a research paper that Patrizio Piraino and I published in the Journal of Labor Economics

The bottom line is that about 40 per cent of us have at some point worked for exactly the same firm that at some point also employed our fathers. But if dad's earnings put him in the top 25 per cent these chances are above average, they start taking off if dad was in the top 5 per cent, and reach the stratosphere for top earners. Almost 7 out of 10 sons of top earning dads had a job with his employer.

the unabridged version is at: www.milescorak.com



http://www.theglobeandmail.com/report-on-business/economy/economy-lab/the-economists/making-it-to-the-top-1-with-a-little-help-from-dad/article2243459/