This paper evaluates the effects of parental income volatility on children’s entrepreneurial decisions in Sweden. We first show that individuals who experience higher uninsurable parental income volatility during adolescence are more likely to become entrepreneurs. A one-standard deviation...

Economists have devoted a tremendous amount of attention to understanding the role of parents in driving within-family income inequality and the motives behind their decisions. The empirical evidence, however, is mixed, with some papers finding reinforcing parental behavior, others finding...

Information plays a key role in economics. According to the benchmark neoclassical model, agents require information in order to optimize their choices. Information, however, is sometimes incomplete or asymmetric in the real world. In this paper, we investigate the role of information for the...

How does availability of education affect who becomes a political representative? Theorists have pointed out access to education as a key to a well-functioning democracy, but few empirical studies have examined how changes in the access to education influence the chances of becoming a...

Over the years, many suggestions have been made on how to reduce the importance of family background in political recruitment. In this study, we examine the effectiveness of one such proposal: the expansion of mass education. More precisely, we utilize a difference-in-difference strategy to...

In this paper, we use a sample of almost 30,000 Swedish mono- and dizygotic twins to study the heritability of financial risk-taking. Following a major pension reform in the year 2000, virtually all Swedish adults had to simultaneously make a financial decision affecting post-retirement wealth....

Twins-based estimates of the return to schooling feature prominently in the labor economics literature. The validity of such estimates hinges critically on the assumption that within-pair variation in schooling is explained by factors which are unrelated to wage earning ability. This paper...

Guilt averse individuals experience a utility loss if they believe they let someone down. In particular, generosity depends on what the donor believes that the recipient expects to receive. In experimental work, several authors have identified a positive correlation between such second-order...