The Canadian Geography of Intergenerational Income Mobility

2019 ◽  
Vol 130 (631) ◽  
pp. 2134-2174 ◽  
Author(s):  
Miles Corak

Abstract Intergenerational income mobility varies significantly across Canada, with the 266 Census Divisions in the 1986 Census clustering into five non-contiguous regions. Nine complementary indicators are calculated for each Census Division using administrative data on a cohort of men and women born between 1963 and 1970. Collectively these indicators underscore the importance of simultaneously examining different dimensions of intergenerational mobility and also show that higher mobility is most strongly associated with less income inequality in the bottom half of the income distribution.

2021 ◽  
Author(s):  
Per Engzell ◽  
Carina Mood

Rising inequalities in rich countries have led to concerns that the economic ladder is getting harder to climb. It is well established that intergenerational income mobility is lower in countries with high inequality, but research on trends in mobility finds conflicting results. Motivated by this uncertainty, we ask: how important are choices of specification for levels and trends in intergenerational income associations? We use Swedish data on cohorts born 1958–1977 and their parents. Varying how, when and for whom income is measured, we estimate 1,658,880 different associations (82,944 specifications across 20 cohorts). Our results reveal that model choice is an underrecognized source of variation in intergenerational mobility research. The most consistent contributor to trends is the advancement of women in the labor market, which leads to increased persistence in women’s earnings and the family income of both men and women. Depending on specification, it is possible to conclude that income mobility is increasing, decreasing, or remaining flat. Despite variability, our results are broadly consistent with the received view that the level of mobility in Sweden is high in a comparative perspective.


2018 ◽  
Vol 7 (12) ◽  
pp. 253
Author(s):  
Veronika V. Eberharter

Based on longitudinal data from the Cross-National Equivalent File 1980–2016 (CNEF 1980–2016) the paper analyzes the extent of income inequality and capability deprivation and the driving forces of the intergenerational transmission of social and economic status of two birth cohorts in Germany, and the United States. In both the countries the empirical results show increasing inequality of the real equivalent household income, and younger cohorts experience a higher persistence of social and economic status. In the United States income inequality is more expressed than in Germany, which is in accordance with lower intergenerational income mobility. The contribution of individual and family background characteristics and capability deprivation indicators to intergenerational income mobility is more pronounced in the United States than in Germany. The significant impact of capability deprivation in childhood on the intergenerational transmission of economic chances emphasizes the importance of economic and social policy designated to guarantee the equality of opportunity.


Social Forces ◽  
2019 ◽  
Vol 98 (4) ◽  
pp. 1436-1464 ◽  
Author(s):  
David J Harding ◽  
Martin D Munk

Abstract Although there is some evidence of declining intergenerational mobility in wealthy countries, the sources of these changes are not well understood. This paper examines the changes in intergenerational mobility in Denmark, which has one of the highest levels of intergenerational mobility in the world. We show that mobility has been declining for both men and women since the late 1950s across the most recent cohorts who are now old enough to measure permanent adult income, and that these changes were concentrated among children born into the middle three-fifths of the income distribution. We examine the sources of this decline by testing hypotheses related to demographic processes, returns to education, and work experience. Our results highlight the importance of both parent and child work experience and family structure in the family of origin among both men and women as well as, to a lesser degree, marital status, assortative mating, and childbearing among women. Although education was an important driver of parent-child income rank associations (IRA) in each cohort, it played little role in accounting for increases in those associations across cohorts.


Author(s):  
Daniel Schnitzlein

SummaryThe paper examines the structure and the extent of intergenerational income mobility in Germany. Using data from the German Socio-economic Panel it is possible to look at both, father-son and father-daughter pairs. In the present case the intergenerational income elasticity is 0.26 for father-son pairs and 0.36 for father-daughter pairs. A more detailed analysis is carried out, applying a quantile regression approach. In a third step I estimate the transition matrices of sons. Although there is some persistence at both ends of the income distribution, the results show a high level of intergenerational mobility in Germany.


Author(s):  
Javier I Nunez ◽  
Leslie Miranda

Abstract This paper studies the magnitude of intergenerational income mobility in less developed, high inequality Chile. Following a known methodology where fathers' incomes are predicted from standard income determinants such as education and occupation, we get comparable estimates of the intergenerational income elasticity in the range of 0.57 to 0.74 and 0.63 to 0.76 for ages 25-40 and 31-40, respectively. These values place Chile at the high end of the available international evidence. Considering Chile's high income inequality, this finding supports the hypothesis proposed in the literature of an inverse relationship between cross-sectional income inequality and intergenerational income mobility.


2017 ◽  
Vol 7 (1) ◽  
pp. 157-185 ◽  
Author(s):  
Carlos Antonio Costa Ribeiro

Abstract This article presents the historical trends in intergenerational income mobility in Brazil between the 1990s and 2000s, based on an analysis of two age cohorts. The findings indicate a significant increase in social mobility. A second objective is to compare economic and sociological approaches to intergenerational mobility, utilizing trends in income mobility and occupational status mobility for this purpose. While the former rose substantially, the latter increased much more modestly. Finally, the article analyses the relation between intergenerational mobility in education and the other two types of mobility. Breaking down income and occupational mobilities into those factors that directly link parents to children (pure inheritance) and other factors mediated by education (mediated inheritance) reveals significantly different results for income and occupation.


2018 ◽  
Vol 17 (5) ◽  
pp. 496-518 ◽  
Author(s):  
Eyal Bar-Haim

AbstractIn recent years, the authors of several studies have established that income inequality is negatively associated with intergenerational income mobility in a phenomenon known as “The Great Gatsby Curve.” Yet, extant research on the effects of inequality and social mobility on people’s perceptions and social and political behavior has yielded contradicting results. In light of these inconsistencies, the aim of the current study was to evaluate the association between income inequality and subjective intergenerational mobility. Using data from 40 countries, the effect of income inequality on subjective mobility was examined, along with their combined effect on views regarding redistribution. The results indicated that income inequality increases mainly subjective downward mobility. The effect of subjective mobility on the attitudes toward redistribution was found to be substantial, but there were no significant results highlighting an interaction between inequality and subjective mobility. The results show how individual perceptions of opportunity inequalities are affected by the structural constraints of society. The social implications of these results are discussed herein.


2019 ◽  
Vol 84 (3) ◽  
pp. 459-485 ◽  
Author(s):  
Xiang Zhou

Intergenerational mobility is higher among college graduates than among people with lower levels of education. In light of this finding, researchers have characterized a college degree as a great equalizer leveling the playing field, and proposed that expanding higher education would promote mobility. This line of reasoning rests on the implicit assumption that the relatively high mobility observed among college graduates reflects a causal effect of college completion on intergenerational mobility, an assumption that has rarely been rigorously evaluated. This article bridges this gap. Using a novel reweighting technique, I estimate the degree of intergenerational income mobility among college graduates purged of selection processes that may drive up observed mobility in this subpopulation. Analyzing data from the National Longitudinal Survey of Youth 1979, I find that once selection processes are adjusted for, intergenerational income mobility among college graduates is very close to that among non-graduates. This finding suggests that expanding the pool of college graduates per se is unlikely to boost intergenerational income mobility in the United States. To promote mobility, public investments in higher education (e.g., federal and state student aid programs) should be targeted at low-income youth.


Author(s):  
Birgitta Jansson

AbstractSweden has been known for having one of the most equal income distributions in the world. However, in recent decades, Sweden has experienced increasing income inequality. An alternative way of measuring the development of inequality is to study and compare the income development within and between two birth cohorts according to gender and different positions of income distribution. The focus in this paper is to study how individual disposable personal income has changed by aging and at various positions of the income distribution, as well as the gender disposable income gap and intragenerational income mobility. Three positions of the income distribution were chosen: percentile 10; median; and percentile 99. Two cohorts, including all individuals born in 1948 and 1958, were tracked from 35 years of age to 53 years of age – with two 18-year overlapping periods, 1983–2000, and 1993–2010. The results show a complex and multifaceted image of the development of income inequality and mobility, within and between the two birth cohorts. Especially male low-income earners, born 1958, have been left behind. Income mobility differ according to gender where women have increased mobility in the bottom quintile and decreased in the top quintile, men experienced the opposite. When modelling mobility education have decreased to contribute to an upward mobility, especial for cohort born 1958. Taking all the results together, the development of increasing income inequality in Sweden is apparent.


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