NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Kaveh Majlesi

Department of Economics
Lund University
P.O. Box 7082
S-220 07 Lund, Sweden
Tel: +46-4622290 4

E-Mail: kaveh.majlesi@nek.lu.se

NBER Working Papers and Publications

September 2016Importing Political Polarization? The Electoral Consequences of Rising Trade Exposure
with David Autor, David Dorn, Gordon Hanson: w22637
Has rising trade integration between the U.S. and China contributed to the polarization of U.S. politics? Analyzing outcomes from the 2002 and 2010 congressional elections, we detect an ideological realignment that is centered in trade-exposed local labor markets and that commences prior to the divisive 2016 U.S. presidential election. Exploiting the exogenous component of rising trade with China and classifying legislator ideologies by their congressional voting record, we find strong evidence that congressional districts exposed to larger increases in import competition disproportionately removed moderate representatives from office in the 2000s. Trade-exposed districts initially in Republican hands become substantially more likely to elect a conservative Republican, while trade-exposed ...
July 2015Poor Little Rich Kids? The Determinants of the Intergenerational Transmission of Wealth
with Sandra E. Black, Paul J. Devereux, Petter Lundborg: w21409
Wealth is highly correlated between parents and their children; however, little is known about the extent to which these relationships are genetic or determined by environmental factors. We use administrative data on the net wealth of a large sample of Swedish adoptees merged with similar information for their biological and adoptive parents. Comparing the relationship between the wealth of adopted and biological parents and that of the adopted child, we find that, even prior to any inheritance, there is a substantial role for environment and a much smaller role for pre-birth factors. When bequests are taken into account, the role of adoptive parental wealth becomes much stronger. We find no evidence that education or earnings of parents are important drivers of the intergenerational wealt...
On the Origins of Risk-Taking
with Sandra E. Black, Paul J. Devereux, Petter Lundborg: w21332
Risk-taking behavior is highly correlated between parents and their children; however, little is known about the extent to which these relationships are genetic or determined by environmental factors. We use data on stock market participation of Swedish adoptees and relate this to the investment behavior of both their biological and adoptive parents. We find that stock market participation of parents increases that of children by about 34% and that both pre-birth and post-birth factors are important. However, once we condition on having positive financial wealth, we find that nurture has a much stronger influence on risk-taking by children, and the evidence of a relationship between stock-holding of biological parents and their adoptive children becomes very weak. We find similar results w...
March 2015Learning to Take Risks? The Effect of Education on Risk-Taking in Financial Markets
with Sandra E. Black, Paul J. Devereux, Petter Lundborg: w21043
We investigate whether acquiring more education when young has long-term effects on risk-taking behavior in financial markets and whether the effects spill over to spouses and children. There is substantial evidence that more educated people are more likely to invest in the stock market. However, little is known about whether this is a causal effect of education or whether it arises from the correlation of education with unobserved characteristics. Using exogenous variation in education arising from a Swedish compulsory schooling reform in the 1950s and 1960s, and the wealth holdings of the population of Sweden in 2000, we estimate the effect of education on stock market participation and risky asset holdings. We find that an extra year of education increases stock market participation by ...
 
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