IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/102425.html
   My bibliography  Save this paper

Accounting for Changes in Intergenerational Mobility

Author

Listed:
  • Handy, Christopher
  • Shester, Katharine

Abstract

We use data from Opportunity Insights to study changes in intergenerational mobility over time in the U.S. Previous research has found no change in mobility at the national level, but we show that this hides substantial increases and decreases in mobility at the local level. These changes appear to be persistent, not simply noise. We use an R^2 decomposition to account for the changes in mobility. Changes in labor market conditions and house prices can explain two thirds of the changes in income mobility. Our results suggest caution in treating mobility as a fixed characteristic of a place.

Suggested Citation

  • Handy, Christopher & Shester, Katharine, 2020. "Accounting for Changes in Intergenerational Mobility," MPRA Paper 102425, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:102425
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/102425/1/MPRA_paper_102425.pdf
    File Function: original version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/112714/1/MPRA_paper_112714.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ryan Gallagher & Robert Kaestner & Joseph Persky, 2019. "The geography of family differences and intergenerational mobility," Journal of Economic Geography, Oxford University Press, vol. 19(3), pages 589-618.
    2. Grawe, Nathan D., 2006. "Lifecycle bias in estimates of intergenerational earnings persistence," Labour Economics, Elsevier, vol. 13(5), pages 551-570, October.
    3. Cassandra Robertson & Rourke O’Brien, 2018. "Health Endowment at Birth and Variation in Intergenerational Economic Mobility: Evidence From U.S. County Birth Cohorts," Demography, Springer;Population Association of America (PAA), vol. 55(1), pages 249-269, February.
    4. Jesse Rothstein, 2019. "Inequality of Educational Opportunity? Schools as Mediators of the Intergenerational Transmission of Income," Journal of Labor Economics, University of Chicago Press, vol. 37(S1), pages 85-123.
    5. Jason Fletcher & Joel Han, 2019. "Intergenerational Mobility in Education: Variation in Geography and Time," Journal of Human Capital, University of Chicago Press, vol. 13(4), pages 585-634.
    6. Daniel Aaronson & Bhashkar Mazumder, 2008. "Intergenerational Economic Mobility in the United States, 1940 to 2000," Journal of Human Resources, University of Wisconsin Press, vol. 43(1).
    7. Sharkey, Patrick & Torrats-Espinosa, Gerard, 2017. "The effect of violent crime on economic mobility," Journal of Urban Economics, Elsevier, vol. 102(C), pages 22-33.
    8. Barbara Biasi, 2019. "School Finance Equalization Increases Intergenerational Mobility: Evidence from a Simulated-Instruments Approach," NBER Working Papers 25600, National Bureau of Economic Research, Inc.
    9. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-429, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Handy, Christopher & Shester, Katharine L., 2022. "Local changes in intergenerational mobility," Labour Economics, Elsevier, vol. 78(C).
    2. Sajid Amin Javed & Mohammad Irfan, 2014. "Intergenerational Mobility: Evidence from Pakistan Panel Household Survey," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(2), pages 175-203.
    3. Arnaud Lefranc, 2018. "Intergenerational earnings persistence and economic inequality in the long-run : Evidence from French cohorts, 1931-1975," Post-Print hal-02528217, HAL.
    4. Mello, Ursula & Nybom, Martin & Stuhler, Jan, 2022. "A lifecycle estimator of intergenerational income mobility," Working Paper Series 2022:21, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    5. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Céline Lecavelier des Etangs-Levallois, 2017. "Overview of intergenerational earnings mobility in Germany," THEMA Working Papers 2017-11, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    7. Quheng Deng & Björn Gustafsson & Shi Li, 2013. "Intergenerational Income Persistence in Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(3), pages 416-436, September.
    8. Arnaud Lefranc, 2018. "Intergenerational Earnings Persistence and Economic Inequality in the Long Run: Evidence from French Cohorts, 1931–75," Economica, London School of Economics and Political Science, vol. 85(340), pages 808-845, October.
    9. Arnaud Lefranc & Fumiaki Ojima & Takashi Yoshida, 2014. "Intergenerational earnings mobility in Japan among sons and daughters: levels and trends," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(1), pages 91-134, January.
    10. Michelle M. Miller & Frank McIntyre, 2020. "Does Money Matter for Intergenerational Income Transmission?," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 941-970, January.
    11. Corak, Miles & Curtis, Lori & Phipps, Shelley, 2010. "Economic Mobility, Family Background, and the Well-Being of Children in the United States and Canada," IZA Discussion Papers 4814, Institute of Labor Economics (IZA).
    12. Lefranc, Arnaud, 2018. "Intergenerational Earnings Persistence and Economic Inequality in the Long-Run: Evidence from French Cohorts, 1931-1975," IZA Discussion Papers 11406, Institute of Labor Economics (IZA).
    13. Florencia Torche, 2015. "Analyses of Intergenerational Mobility," The ANNALS of the American Academy of Political and Social Science, , vol. 657(1), pages 37-62, January.
    14. Guo, Ningning, 2022. "Hollowing out of opportunity: Automation technology and intergenerational mobility in the United States," Labour Economics, Elsevier, vol. 75(C).
    15. Hennig, Jan-Luca, 2021. "Labor Market Polarization and Intergenerational Mobility: Theory and Evidence," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242353, Verein für Socialpolitik / German Economic Association.
    16. Dodin, Majed & Findeisen, Sebastian & Henkel, Lukas & Sachs, Dominik & Schüle, Paul, 2021. "Social Mobility in Germany," Rationality and Competition Discussion Paper Series 298, CRC TRR 190 Rationality and Competition.
    17. Cécile Bonneau, 2020. "The Concentration of investment in education in the US (1970-2018)," Working Papers halshs-02875965, HAL.
    18. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez, 2014. "Where is the land of Opportunity? The Geography of Intergenerational Mobility in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1553-1623.
    19. Gouskova, Elena & Chiteji, Ngina & Stafford, Frank, 2010. "Estimating the intergenerational persistence of lifetime earnings with life course matching: Evidence from the PSID," Labour Economics, Elsevier, vol. 17(3), pages 592-597, June.
    20. Paul Gregg & Lindsey Macmillan & Claudia Vittori, 2017. "Moving Towards Estimating Sons' Lifetime Intergenerational Economic Mobility in the UK," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(1), pages 79-100, February.

    More about this item

    Keywords

    intergenerational mobility; college attendance; labor market entry conditions;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:102425. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.