Intergenerational Earnings Mobility Revisited: Estimates Based on Lifetime Earnings*

Using Norwegian intergenerational data, which include a substantial part of the life‐cycle earnings for children and almost the entire life‐cycle earnings for their fathers, we present new estimates of intergenerational mobility. Extending the length of fathers’ earnings window from 5 to 25 years increases estimated elasticities. Increasing the age at which fathers’ earnings are observed has the opposite effect. Biases in the estimated elasticities are related to both transitory earnings variation and life‐cycle measurement error; the former appear to be more important than the latter. Estimation bias stemming from persistence in transitory innovations plays only a minor role. Our findings indicate that intergenerational earnings mobility in Norway might have been strongly overstated in many earlier studies with shorter earnings histories. Some of our new estimates are twice as large as earlier estimates.     

Estimating the returns to schooling: a likelihood approach based on normal mixtures

In this paper we develop likelihood‐based methods for statistical inference in a joint system of equations for the choice of length of schooling and earnings. The model for schooling choice is assumed to be an ordered probit model, whereas the earnings equation contains variables that are flexible transformations of schooling and experience, with corresponding coefficients that are allowed to be heterogeneous across individuals. Under the assumption that the distribution of the random terms of the model can be expressed as a finite mixture of multinormal distributions, we show that the joint probability distribution for schooling and earnings can be expressed on closed form. In an application of our method on Norwegian data, we find that the mixed Gaussian model offers a substantial improvement in fit to the (heavy‐tailed) empirical distribution of log‐earnings compared to a multinormal benchmark model. Copyright © 2010 John Wiley & Sons, Ltd.     

The dynamics of regional specialization and cluster formation: dividing trajectories of maritime industries in two Norwegian regions

The theoretical starting point of this paper is the academic debate on regional specialization, agglomeration and industrial clusters. The paper offers further insights into the industrial dynamics within regional contexts by combining two approaches: (1) an historical study of industrial agency focusing on entrepreneurship, diversification and specialization; (2) a study of the relations within contemporary industrial systems important for industrial upgrading. Methodical triangulation has provided longitudinal studies. Particular attention is paid to path dependence as well as entrepreneurial capacity in order to explain why the industrial trajectories of matching regions divide. As the paper discusses continuity and change, a more dynamic perspective on path dependency is introduced. The past is not just regarded as a constraint, but as heritage as well. The dynamics leading to cluster formation and upgrading as well as industrial fragmentation are investigated in detail. The developments of shipyards and related maritime industries of the two Norwegian regions compared are characterized by static continuity and dynamic continuity, respectively.     

Reforming social security: assessing the effects of alternative funding strategies

Population ageing implies that the large pay-as-you-go social security programmes implemented in many OECD economies will run into severe financial problems. By means of a numerical overlapping generations model, this paper investigates the intergenerational welfare effects of a transition to funded security programmes. Such programmes imply permanent increases in the welfare of the young and unborn generations. It is demonstrated that the size of the welfare gains varies significantly between alternative funding strategies. A nonindividualized funding strategy characterized by increased government asset accumulation triggers considerable welfare gains through increased asset returns in the future. Even larger welfare gains may be realized by an individual funding strategy characterized by increased asset accumulation accompanied by an adoption of actuarial supplementary pensions (i.e. actuarial supplementary pensions combined with a fixed minimum pension) which reduces future tax distortions drastically.     

Knowledge and attitudes of adolescents regarding home economics in Tromsø, Norway

The purpose of this study was to investigate the knowledge and attitudes of adolescents in Tromsø relating to nutrition; whether pupil behaviour and attitudes regarding nutrition had changed in the tenth grade compared with the eighth grade; and whether this was linked to pupils’ home economics lessons in grade 9. In total, 606 adolescents (321 boys and 285 girls) were studied on two different occasions – 2002 and 2005. A food frequency questionnaire focusing on 16 different food and beverage groups was used. It investigated knowledge and attitudes, the amounts of food items consumed and the socio‐economic situation of the participants and their families. The study produced interesting findings. The boys had surprisingly low knowledge of fruit and vegetables that did not change in a positive direction, between the eighth and tenth grades. The change among the girls was very small and therefore this study concludes that the teaching of home economics had no significant influence on the pupils’ knowledge of and attitudes towards eating fruit and vegetables. The study of home economics does not appear to enhance adolescents’ skills and attitudes to the extent expected from the curriculum. But there are gender differences at both grades. Changes in the home economics course are necessary to improve children's and adolescents’ knowledge and attitudes. Increased focus on the scope and variety of teaching methods will be a key to improvement. Future research is required to understand the potential of the home economics curricula to change adolescents’ knowledge about and attitudes to home economics in Norway.