Sunday, February 11, 2007

Income inequality among siblings


There is significant income inequality of siblings with the exact same family background. One researcher found that the average annual earnings differential between brothers was about $28,000, compared with an earnings differential of $30,600 for men paired randomly.

That is, after controlling for sex, socio-economic status, religion, education opportunities, race, parental status, etc. (assuming those factors are usually the same for 2 brothers in the same family), there is significant income inequality of $28,000 between siblings within families, which is almost as much as the income inequality in the general population of males ($30,600).

And as Robin Hanson points out, there is also significant non-financial inequality, such as of popularity, respect, beauty, talent, ability, etc., and significant income inequality between the nations of a world, etc. that get very little attention, compared to the attention paid to income inequality among households in the U.S.