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The Inheritance of Employers and Nonlinearities in Intergenerational Earnings Mobility

In: Inequality and Growth: Patterns and Policy

Author

Listed:
  • Miles Corak

    (University of Ottawa)

  • Patrizio Piraino

    (University of Cape town)

  • Francisco H. G. Ferreira

    (The World Bank and IZA)

Abstract

A growing literature addressing the intergenerational transmission of earnings often forms the backdrop for policy discussions dealing with equality of opportunity. This literature is generally framed in the context of a linear regression to the mean model, and motivated theoretically by models of parental investments in the human capital of their children as in Becker and Tomes (1986, 1979) and Loury (1981). The major concern of the empirical research has been the challenge of correctly estimating the elasticity of earnings between parents and their children in the presence of measurement errors and life cycle biases. Atkinson, Maynard, and Trinder (1983), Solon (1992, 1989) and Zimmerman (1992) offer a starting point that has led to a large number of studies from a number of countries, surveyed by d’Addio (2007), Björklund and Jäntti (2009), Black and Devereux (2011), Corak (2006), and Solon (2002, 1999). Böhlmark and Lindquist (2006), Grawe (2006), Haider and Solon (2006) and Nybom and Stuhler (2016) represent some recent methodological developments.

Suggested Citation

  • Miles Corak & Patrizio Piraino & Francisco H. G. Ferreira, 2016. "The Inheritance of Employers and Nonlinearities in Intergenerational Earnings Mobility," International Economic Association Series, in: Kaushik Basu & Joseph E. Stiglitz (ed.), Inequality and Growth: Patterns and Policy, chapter 1, pages 1-34, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-137-55459-8_1
    DOI: 10.1057/9781137554598_1
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    Cited by:

    1. Schuermann, Henrik, 2020. "Who’s Your Daddy? Intergenerational Mobility in the U.S. Financial Industry," Schumpeter Discussion Papers sdp20002, Universitätsbibliothek Wuppertal, University Library.

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