Abstract
We study the intergenerational transmission of cognitive and non-cognitive abilities using population data and correct for measurement-error in abilities using two sets of instruments. The results show that previous estimates are biased downwards and once measurement-error is corrected for, the correlation in non-cognitive ability is close to that of cognitive ability. By considering both parents, intergenerational ability correlations account for a substantial portion of the sibling correlation. Using adoptees, we find that the social impact of maternal abilities is more important than paternal abilities. Children’s educational attainment and labor market outcomes are strongly related to parents’ cognitive and non-cognitive abilities.
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