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Intergenerational Earnings Mobility

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Author Info
Lalaina H. Hirvonen
Abstract

This article adopts Chadwick and Solon's (2002) model by using family earnings in the study of intergenerational earnings mobility with a highlight on the role of assortative mating. I analyze mean and quantile regression coefficients as well as transition matrices to investigate family earnings mobility between parents and daughters and parents and sons from Swedish register data. My findings indicate that Sweden has a higher degree of mobility compared to the United States, and that assortative mating also plays an important role as a channel through which income status is transmitted across generations in Sweden. However, the difference in intergenerational mobility patterns between the two countries does not, inherently, depend on factors that affect the marriage match. Swedish daughters and sons exhibit a rather similar scheme of intergenerational earnings transmission. Daughters tend to be slightly more mobile than sons, and the difference between their elasticity estimates is small but statistically significant. The quantile regression approach reveals that parents' family earnings are less important as an explanatory variable at the upper end of the children's earnings distribution than they are at the bottom, while transition matrices show substantial earnings persistence in the top earnings class. Copyright © 2008 American Journal of Economics and Sociology, Inc..

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Article provided by Blackwell Publishing in its journal American Journal of Economics and Sociology.

Volume (Year): 67 (2008)
Issue (Month): 5 (November)
Pages: 777-826
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Handle: RePEc:bla:ajecsc:v:67:y:2008:i:5:p:777-826

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