under the assumption that parental income is the main source of heterogeneity. We explicitly model the variability and … constrained families. Conversely, the presence of heterogeneity means that economic and linear statistical models of inheritance … Goldberger's (1989) criticism of human capital models of inheritance. Finally, we suggest that any cross-country differences in …

with the inheritance of employers that have different intergenerational earnings elasticities. The model also demonstrates … that the inheritance of employers plays a role in understanding observed nonlinearities …