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Intergenerational Income Mobility in Taiwan: Evidence from TS2SLS and Structural Quantile Regression

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  • Kan Kamhon

    (Institute of Economics, Academia Sinica, Taipei 11529, Taiwan)

  • Li I-Hsin

    (Taiwan Institute of Economic Research, Taipei, Taiwan)

  • Wang Ruei-Hua

    (Taiwan Research Institute, Taipei, Taiwan)

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.

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  • Kan Kamhon & Li I-Hsin & Wang Ruei-Hua, 2015. "Intergenerational Income Mobility in Taiwan: Evidence from TS2SLS and Structural Quantile Regression," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(1), pages 1-28, January.
    • Handle: RePEc:bpj:bejeap:v:15:y:2015:i:1:p:28:n:2
    DOI: 10.1515/bejeap-2013-0008
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    2. Chu, Luke Yu-Wei & Lin, Ming-Jen, 2016. "Economic development and intergenerational earnings mobility: Evidence from Taiwan," Working Paper Series 19495, Victoria University of Wellington, School of Economics and Finance.
    3. Chu, Luke Yu-Wei & Lin, Ming-Jen, 2016. "Economic development and intergenerational earnings mobility: Evidence from Taiwan," Working Paper Series 5272, Victoria University of Wellington, School of Economics and Finance.
    4. Bonacini, Luca & Gallo, Giovanni & Scicchitano, Sergio, 2021. "Sometimes you cannot make it on your own. How household background influences chances of success in Italy," GLO Discussion Paper Series 832, Global Labor Organization (GLO).
    5. Chenhong Peng & Paul Siu Fai Yip & Yik Wa Law, 2019. "Intergenerational Earnings Mobility and Returns to Education in Hong Kong: A Developed Society with High Economic Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(1), pages 133-156, May.
    6. Yu-Wei Luke Chu & Ming-Jen Lin, 2020. "Intergenerational earnings mobility in Taiwan: 1990–2010," Empirical Economics, Springer, vol. 59(1), pages 11-45, July.
    7. Hsiu-Fen Hsu, 2021. "Intergenerational persistence in latent socioeconomic status: evidence from Taiwan," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(4), pages 753-772, December.
    8. Nizam MelikÅŸah Demirtas & Orhan Torul, 2021. "Intergenerational Income Mobility in Turkey Abstract:," Working Papers 2021/05, Bogazici University, Department of Economics.
    9. David Fairbrother & Renuka Mahadevan, 2016. "Do Education and Sex Matter for Intergenerational Earnings Mobility? Some Evidence from Australia," Australian Economic Papers, Wiley Blackwell, vol. 55(3), pages 212-226, September.
    10. Shariq Mohammed, A.R., 2019. "Does a good father now have to be rich? Intergenerational income mobility in rural India," Labour Economics, Elsevier, vol. 60(C), pages 99-114.
    11. Dang, Thang, 2015. "Intergenerational mobility of earnings and income among sons and daughters in Vietnam," MPRA Paper 75357, University Library of Munich, Germany.
    12. Tao, Hung-Lin & Cheng, Hui-Pei, 2022. "Parental and sibling influence on study field choice: Gender-stereotypical or field preference transmission," Journal of Asian Economics, Elsevier, vol. 82(C).
    13. Doan, Quang Hung & Nguyen, Ngoc Anh, 2016. "Intergenerational Income Mobility in Vietnam," MPRA Paper 70603, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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