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Intergenerational Mobility in Australia

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Author Info
Andrew Leigh (Australian National University)

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Abstract

Combining four surveys conducted over a forty year period, I calculate intergenerational earnings elasticities for Australia, using predicted earnings in parents' occupations as a proxy for actual parental earnings. In the most recent survey, the elasticity of sons' wages with respect to fathers' wages is around 0.2. Comparing this estimate with earlier surveys, I find little evidence that intergenerational mobility in Australia has significantly risen or fallen over time. Applying the same methodology to United States data, I find that Australian society exhibits more intergenerational mobility than the United States. My method appears to slightly overstate the degree of intergenerational mobility; if the true intergenerational earnings elasticity in the United States is 0.4-0.6 (as recent studies have suggested), then the intergenerational earnings elasticity in Australia is probably around 0.2-0.3.

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Publisher Info
Article provided by Berkeley Electronic Press in its journal Contributions to Economic Analysis & Policy.

Volume (Year): 7 (2007)
Issue (Month): 2 ()
Pages: 1781-1781
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Handle: RePEc:bep:eapcon:v:7:y:2007:i:2:p:1781-1781

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Related research
Keywords: social mobility imputed earnings Australia United States

Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Bjorklund, Anders & Jantti, Markus, 1997. "Intergenerational Income Mobility in Sweden Compared to the United States," American Economic Review, American Economic Association, vol. 87(5), pages 1009-18, December. [Downloadable!] (restricted)
  2. Ramses H. Abul Naga & Frank A Cowell, 2002. "Intergenerational Mobility in Britain: Revisiting the Prediction Approach of Dearden, Machin and Reed," STICERD - Distributional Analysis Research Programme Papers 62, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
    Other versions:
  3. Osterbacka, Eva, 2001. " Family Background and Economic Status in Finland," Scandinavian Journal of Economics, Blackwell Publishing, vol. 103(3), pages 467-84, September. [Downloadable!] (restricted)
  4. Osterberg, Torun, 2000. "Intergenerational Income Mobility in Sweden: What Do Tax-Data Show?," Review of Income and Wealth, Blackwell Publishing, vol. 46(4), pages 421-36, December.
  5. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," American Economic Review, American Economic Association, vol. 96(4), pages 1308-1320, September. [Downloadable!]
    Other versions:
  6. Gregory, R.G. & Hunter, B., 1995. "The Macro Economy and the Growth of Ghettos and Urban Poverty in Australia," CEPR Discussion Papers 325, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University.
  7. Laura Chadwick & Gary Solon, 2002. "Intergenerational Income Mobility Among Daughters," American Economic Review, American Economic Association, vol. 92(1), pages 335-344, March. [Downloadable!]
  8. Andrew Leigh, 2005. "Deriving Long-Run Inequality Series from Tax Data," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages S58-S70, 08. [Downloadable!] (restricted)
    Other versions:
  9. Christian Dustmann, 2005. "Intergenerational Mobility and Return Migration: Comparing the sons of foreign and native born fathers," CReAM Discussion Paper Series 0505, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
  10. Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S1-39, July. [Downloadable!] (restricted)
    Other versions:
  11. Corak, Miles & Heisz, Andrew, 1998. "The Intergenerational Earnings and Income Mobility of Canadian Men: Evidence from Longitudinal Income Tax Data," Analytical Studies Branch Research Paper Series 1998113e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  12. Miles Corak, 2006. "Do Poor Children Become Poor Adults? Lessons from a Cross Country Comparison of Generational Earnings Mobility," IZA Discussion Papers 1993, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Dearden, Lorraine & Machin, Stephen & Reed, Howard, 1997. "Intergenerational Mobility in Britain," Economic Journal, Royal Economic Society, vol. 107(440), pages 47-66, January. [Downloadable!] (restricted)
    Other versions:
  14. Lillard, L.A. & Kilburn, M.R., 1995. "Intergenerational Earnings Links: Sons and Daughters," Papers 95-17, RAND - Labor and Population Program.
  15. Miller, Paul & Mulvey, Charles & Martin, Nick, 2001. "Genetic and environmental contributions to educational attainment in Australia," Economics of Education Review, Elsevier, vol. 20(3), pages 211-224, June. [Downloadable!] (restricted)
  16. Christopher Dunn, 2007. "The Intergenerational Transmission of Lifetime Earnings: Evidence from Brazil," Contributions to Economic Analysis & Policy, Berkeley Electronic Press, vol. 7(2), pages 1782-1782. [Downloadable!] (restricted)
  17. Dan Andrews & Andrew Leigh, 2008. "More Inequality, Less Social Mobility," CEPR Discussion Papers 566, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
  18. George J. Borjas, 2006. "Making it in America: Social Mobility in the Immigrant Population," NBER Working Papers 12088, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Dan Andrews & Andrew Leigh, 2008. "More Inequality, Less Social Mobility," CEPR Discussion Papers 566, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
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