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Intergenerational top income persistence: Denmark half the size of Sweden

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  • Munk, Martin D.
  • Bonke, Jens
  • Hussain, M. Azhar

Abstract

In this paper, we investigate intergenerational top earnings and top income mobility in Denmark. Access to administrative registers allowed us to look at very small fractions of the population. We find that intergenerational mobility is lower in the top when including capital income in the income measure—for the rich top 0.1% fathers and sons the elasticity is 0.466. Compared with Sweden, however, the intergenerational top income persistence is about half the size in Denmark.

Suggested Citation

  • Munk, Martin D. & Bonke, Jens & Hussain, M. Azhar, 2016. "Intergenerational top income persistence: Denmark half the size of Sweden," Economics Letters, Elsevier, vol. 140(C), pages 31-33.
    • Handle: RePEc:eee:ecolet:v:140:y:2016:i:c:p:31-33
    DOI: 10.1016/j.econlet.2015.11.038
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    References listed on IDEAS

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    1. Björklund, Anders & Roine, Jesper & Waldenström, Daniel, 2012. "Intergenerational top income mobility in Sweden: Capitalist dynasties in the land of equal opportunity?," Journal of Public Economics, Elsevier, vol. 96(5), pages 474-484.
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    6. Jesper Roine & Daniel Waldenström, 2012. "On The Role Of Capital Gains In Swedish Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(3), pages 569-587, September.
    7. Chul-In Lee & Gary Solon, 2009. "Trends in Intergenerational Income Mobility," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 766-772, November.
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    10. Mohammad Azhar Hussain & Martin D. Munk & Jens Bonke, 2009. "Intergenerational Earnings Mobilities – How Sensitive are they to Income Measures?," Journal of Income Distribution, Ad libros publications inc., vol. 18(3-4), pages 79-92, September.
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    Cited by:

    1. Rasmus Landersø & James J. Heckman, 2017. "The Scandinavian Fantasy: Sources of Intergenerational Mobility in Denmark and the US," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(1), pages 178-230, January.
    2. Martín Leites & Xavier Ramos & Cecilia Rodríguez & Vilá Joan, 2022. "Intergenerational mobility along the income distribution: estimates using administrative data for a developing country," Documentos de Trabajo (working papers) 22-05, Instituto de Economía - IECON.
    3. Anne‐Line Helsø, 2021. "Intergenerational Income Mobility in Denmark and the United States," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(2), pages 508-531, April.

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    More about this item

    Keywords

    Intergenerational top income persistence; Top incomes; Piecewise (spline) regression;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • D3 - Microeconomics - - Distribution
    • D6 - Microeconomics - - Welfare Economics

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