Intergenerational Determinants of Income Level in Finland

This study estimates the level of intergenerational transmission of income in Finland and assesses the contribution of parental and personal socioeconomic and demographic characteristics to this relationship. We used a longitudinal register-based data set covering two decades and selected cohorts born between 1973 and 1976 for analysis. The results demonstrate strong intergenerationality, with those from the lowest and highest income quintiles being the most probable to remain in the same income quintile in adulthood. Approximately half of these associations are attributable to parental characteristics among men and by personal characteristics among women. Our results further show complex interactive effects, with higher-income parents unable to entirely protect their offspring from the negative impact that unemployment, single parenting, and living alone has on personal income levels. These findings demonstrate significant and multifaceted intergenerational continuities in income level even in a Nordic welfare state such as Finland.