Intergenerational persistence in occupational choices is one of the main drivers of persistence in incomes and hence a key determinant of social mobility. Studying this phenomenon, the existing literature has exclusively focused on supply side mechanisms by assuming that children can freely choose in which occupation to work. This paper, however, quantifies the importance of regional labor demand by merging regional and occupation-specific vacancy shares covering 400 regions and 436 occupations with the German Socioeconomic Panel. The main result indicates that controlling for labor demand reduces occupational persistence by up to 10 percent, the same magnitude as controlling for children's education does. Furthermore, I find that the degree of occupational persistence is relatively homogeneous across parent-child combinations. A child is around 20 times more likely to work in a given occupation if the parent works in this occupation. Last, children who follow into their parent's occupation experience an initial wage premium of around 6 percent and their annual unemployment risk halves.

Policies to support the transition to a carbon-neutral economy are high on the policy agenda. Their effectiveness in reducing carbon emissions and their distributional consequences are actively debated. One key reason for the ongoing debate is that quantitative answers regarding the reduction-redistribution trade-offs of such policies remain limited. Looking at the emissions of household consumption, this paper makes two contributions to the discussion. First, we empirically show that infrequently adjusted consumption goods, i.e. consumption commitment goods such as cars or heating systems, together with their complementary consumption (gas, oil), account for more than 35 percent of household carbon emissions. Second, we develop a quantitative life-cycle model with heterogeneous adoption rates of carbon-neutral commitment goods by income to quantify the reduction-redistribution trade-off of different policy mixes. Our results for the reduction-redistribution trade-off show that a percentage subsidy for carbon neutral consumption effectively reduces emissions by targeting high-income households. If the subsidy is financed by a progressive income tax, it yields a policy mix that leads to rapid emission reductions and a majority of households supporting its distributional effects.