Introduction

Abstract

Opportunities for economic success are usually not equal across individuals in a society; in fact, they are characterized by inherited social structures. During feudalism in medieval Europe personal economic success, and thus the distribution of income and wealth in society, was determined by the property passed from father to (first-born) son. In contrast, today education is one of the most important factors for personal economic success. However, family background still plays a crucial role, as parental income in uences childrenʼs opportunities through investment in their human capital. Therefore income levels are to some degree persistent across generations. Shedding light on this persistence on both theoretical and empirical grounds is the subject of this part of the thesis.