Intergenerational Income Mobility in a Less-Developed, High-Inequality Context: The Case of Chile

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.

2015 ◽  
Vol 15 (1) ◽  
pp. 257-284 ◽  
Author(s):  
Kamhon Kan ◽  
I-Hsin Li ◽  
Ruei-Hua Wang

Abstract We estimate intergenerational income mobility in Taiwan, employing repeated cross-sectional data. We find that the father–son, father–daughter, mother–son and mother–daughter income elasticities-at-40 are around 0.18, 0.23, 0.50 and 0.54, respectively. Moreover, the mother–child income elasticity increases slightly over children’s birth year, while the father–child elasticity is stable, but we do not find any time trend in elasticities. Since mean-regression results may not be informative in fast growing economies, we estimate relative mobility via structural quantile regression models. The results indicate that parents’ income affects children’s income mainly through the propagation of children’s income shocks, rather than affecting the level directly.


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.


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.


2019 ◽  
Vol 85 (1) ◽  
pp. 1-19
Author(s):  
Mengjie Jin ◽  
Xuemei Bai ◽  
Kevin X Li ◽  
Wenming Shi

AbstractStudies show that the gain from China's remarkable growth of the past 35 years has not been evenly shared, especially through the intergenerational transmission of income. To address this concern, we use data from China Health and Nutrition Survey and find the intergenerational income elasticity to be 0.466 in 2011, which suggests that sons’ incomes are affected by their fathers’ economic statuses to a large extent. A cross-country comparison indicates that the degree of generational income mobility in China is lower than that in many developed nations. Meanwhile, by investigating possible transmission channels, we find that the fathers’ investments in the sons’ education and occupation play substantial roles in intergenerational transmission of income. The results not only demonstrate the trends in intergenerational income mobility in China, but also identify the most likely transmission channels, which is of great importance to improving social equality.


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.


2018 ◽  
Author(s):  
Sebastian Daza ◽  
Alberto Palloni

We assess the magnitude of the association between intergenerational income mobility and US adult mortality by gender, age group, race/ethnicity and the causes of death. We use a data set from The Health Inequality Project and CDC mortality data at the county level. We find that under different model specifications the association between income mobility and adult mortality is strong, properly signed, and consistent with our hypotheses. If the association we find reflects a causal effect it would translate into shifts in life expectancy at age 40 of as much as 2.0-4.8 years among males and 0.1-2.0 among females, equivalent to 5.1-12.5 and 0.2-4.7 percent of the U.S. male and female life expectancy at age 40 respectively. On average, these effects are 1.5 to 2.5 times as large as those of income inequality and represent between 40 (males) and 25 (females) percent of the magnitude of an income shift from the lowest to the highest quartile of the U.S. income distribution.


2020 ◽  
Author(s):  
Yonatan Berman

This paper combines cross-sectional and longitudinal income data to present the evolution of absolute intergenerational income mobility in ten developed economies in the 20th century. Absolute mobility decreased during the second half of the 20th century in all these countries. Increasing income inequality and decreasing growth rates have contributed to the decrease. Yet, growth is the dominant contributor in most countries. We show that detailed panel data are unnecessary for estimating absolute mobility over the long run. (Stone Center on Socio-Economic Inequality Working Paper)


2007 ◽  
Author(s):  
R. David McLean ◽  
Jeffrey E. Pontiff ◽  
Akiko Watanabe

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