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The Intergenerational Transmission of Lifetime Earnings: Evidence from Brazil

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Author Info
Christopher Dunn (University of Michigan)
Abstract

This paper uses unique household survey data from Brazil and recently developed econometric techniques to estimate the transmission of lifetime earnings in Brazil and to examine effects of earnings measurement on estimates of intergenerational mobility. The level of intergenerational earnings transmission in Brazil is estimated to be among the highest observed for any country. Observations of earnings across the life-cycles of fathers and sons are used to form estimates of the transmission of lifetime earnings and to study life-cycle measurement effects on earnings transmission estimates. The use of earnings of relatively young sons, common in previous studies, is found to underestimate the true level of transmission of lifetime earnings. This paper provides two methods to obtain improved measures of lifetime earnings transmission. This paper also finds that education may be the most significant pathway by which earnings are transmitted intergenerationally.

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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: 1782-1782
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Handle: RePEc:bep:eapcon:v:7:y:2007:i:2:p:1782-1782

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Related research
Keywords: intergenerational transmission earnings transmission earnings mobility intergenerational mobility intergenerational earnings elasticity

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Find related papers by JEL classification:
J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion

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. Grawe, Nathan D., 2003. "Life Cycle Bias in the Estimation of Intergenerational Earnings Persistence," Analytical Studies Branch Research Paper Series 2003207e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  3. Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-47, February. [Downloadable!] (restricted)
  4. 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:
  5. Ramses H. ABUL NAGA, 2001. "Biases of the Ordinary Least Squares and Instrumental Variables Estimators of the Intergenerational Earnings Correlation : Revisited in the Light of Panel Data," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 01.05, Université de Lausanne, Faculté des HEC, DEEP. [Downloadable!]
  6. Lillard, Lee A, 1977. "Inequality: Earnings vs. Human Wealth," American Economic Review, American Economic Association, vol. 67(2), pages 42-53, March.
  7. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September. [Downloadable!] (restricted)
    Other versions:
  8. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-89, December. [Downloadable!] (restricted)
  9. Bowles, Samuel, 1972. "Schooling and Inequality from Generation to Generation," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages S219-S51, Part II, . [Downloadable!] (restricted)
  10. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-29, June.
  11. Solon, Gary, 1989. "Biases in the Estimation of Intergenerational Earnings Correlations," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 172-74, February. [Downloadable!] (restricted)
  12. Atsushi Inoue & Gary Solon, 2005. "Two-Sample Instrumental Variables Estimators," NBER Technical Working Papers 0311, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Anders Bohlmark & Matthew J. Lindquist, 2006. "Life-Cycle Variations in the Association between Current and Lifetime Income: Replication and Extension for Sweden," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 879-900, October. [Downloadable!]
  14. Lillard, L.A. & Kilburn, M.R., 1995. "Intergenerational Earnings Links: Sons and Daughters," Papers 95-17, RAND - Labor and Population Program.
  15. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June. [Downloadable!] (restricted)
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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. Andrew Leigh, 2007. "Intergenerational Mobility in Australia," Contributions to Economic Analysis & Policy, Berkeley Electronic Press, vol. 7(2), pages 1781-1781. [Downloadable!] (restricted)
  2. Tom Hertz & Tamara Jayasundera & Patrizio Piraino & Sibel Selcuk & Nicole Smith & Alina Verashchagina, 2008. "The Inheritance of Educational Inequality: International Comparisons and Fifty-Year Trends," Advances in Economic Analysis & Policy, Berkeley Electronic Press, vol. 7(2), pages 1775-1775. [Downloadable!] (restricted)
  3. Irene Ng, 2007. "Intergenerational Income Mobility in Singapore," Topics in Economic Analysis & Policy, Berkeley Electronic Press, vol. 7(2), pages 1713-1713. [Downloadable!] (restricted)
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