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Intergenerational mobility: New evidence from consumption data

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  • Gustaf Bruze

Abstract

The intergenerational persistence of consumption describes the extent to which children inherit the living standards of their parents. Evidence on this parameter is scarce due to limited data on the joint consumption of parents and children. This paper identifies parents who participated in the Danish Expenditure Survey, links them to their children through population‐wide Danish registries, and estimates the intergenerational elasticity of consumption in Denmark. The results suggest that, consistent with intergenerational consumption smoothing, the persistence of consumption across generations is higher than the persistence of earnings and income.

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  • Gustaf Bruze, 2018. "Intergenerational mobility: New evidence from consumption data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(4), pages 580-593, June.
    • Handle: RePEc:wly:japmet:v:33:y:2018:i:4:p:580-593
    DOI: 10.1002/jae.2626
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    Cited by:

    1. Wolfgang Frimmel & Martin Halla & Jörg Paetzold, 2019. "The Intergenerational Causal Effect of Tax Evasion: Evidence from the Commuter Tax Allowance in Austria," Journal of the European Economic Association, European Economic Association, vol. 17(6), pages 1843-1880.
    2. Caballé, Jordi & Moro-Egido, Ana I., 2021. "Do aspirations reduce differences in wealth accumulation?," Economic Modelling, Elsevier, vol. 102(C).
    3. Fan, Yi, 2020. "Does adversity affect long-term financial behaviour? Evidence from China’s rustication programme," Journal of Urban Economics, Elsevier, vol. 115(C).
    4. Fatimah, Alfariany Milati & Kofol, Chiara, 2023. "Migrating for children’s better future: Intergenerational mobility of internal migrants’ children in Indonesia," Journal of Asian Economics, Elsevier, vol. 86(C).
    5. Sadegh Eshaghnia & James J. Heckman & Rasmus Landersø & Rafeh Qureshi, 2022. "Intergenerational Transmission of Family Influence," NBER Working Papers 30412, National Bureau of Economic Research, Inc.
    6. Bethencourt, Carlos & Kunze, Lars, 2022. "The economics of crime and socialization: The role of the family," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 579-597.
    7. Zafar, Rafia, 2022. "Intergenerational Mobility in Income and Consumption: Evidence from Indonesia," SocArXiv uzcfs, Center for Open Science.
    8. Jonathan D. Fisher & David S. Johnson, 2020. "Inequality and Mobility over the Past Half-Century Using Income, Consumption, and Wealth," NBER Chapters, in: Measuring Distribution and Mobility of Income and Wealth, pages 437-455, National Bureau of Economic Research, Inc.

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