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The Intergenerational Transmission of Income and Education: A Comparison of Japan and France

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  • Arnaud LEFRANC
  • Fumiaki OJIMA
  • Takashi YOSHIDA

Abstract

The paper compares the extent of intergenerational earnings and educational correlation in Japan and France. It uses very similar repeated surveys that provide information on educational attainment and family background, conducted in Japan and France. To insure comparability, similar sample restrictions and specifications are imposed. For Japan, we use waves 1965, 1975, 1985, 1995 and 2005. For France, we use waves 1965, 1970, 1977, 1985, 1993 and 2003. Intergenerational elasticity in years of education can be readily estimated using available information. On the other hand, intergenerational earnings elasticity cannot be directly measured given the lack of information on parental income in both surveys. This leads us to apply Bjorklund and Jantti (1999) two sample instrumental variables estimation strategy. Lastly, we discuss to what extent differences in earnings mobility is related to differences in educational mobility and to differences in returns to education between the two countries.

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Bibliographic Info

Paper provided by European University Institute in its series RSCAS Working Papers with number 2008/25.

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Date of creation: 17 Jul 2008
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Handle: RePEc:rsc:rsceui:2008/25

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Keywords: intergenerational mobility; earnings education; Japan; France; education Japan France.;

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References

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  1. Arellano, Manuel & Meghir, Costas, 1992. "Female Labour Supply and On-the-Job Search: An Empirical Model Estimated Using Complementary Data Sets," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 59(3), pages 537-59, July.
  2. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
  3. Kenneth A. Couch & Thomas A. Dunn, 1995. "Intergenerational Correlations in Labor Market Status: A Comparison of the United States and Germany," Discussion Papers of DIW Berlin 111, DIW Berlin, German Institute for Economic Research.
  4. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 257-298 National Bureau of Economic Research, Inc.
  5. Dominique Goux & Eric Maurin, 1998. "The Decline in Demand for Unskilled Labor : An Empirical Analysis Method and its Application to France," Working Papers, Centre de Recherche en Economie et Statistique 98-53, Centre de Recherche en Economie et Statistique.
  6. Bhashkar Mazumder, 2002. "Earnings Mobility in the US: A New Look at Intergenerational Inequality," Working Papers 02-11, Center for Economic Studies, U.S. Census Bureau.
  7. Arnaud Lefranc & Alain Trannoy, 2004. "Intergenerational earnings mobility in France : Is France more mobile than the US ?," IDEP Working Papers, Institut d'economie publique (IDEP), Marseille, France 0401, Institut d'economie publique (IDEP), Marseille, France, revised Feb 2004.
  8. Conlisk, John, 1974. "Can Equalization of Opportunity Reduce Social Mobility?," American Economic Review, American Economic Association, vol. 64(1), pages 80-90, March.
  9. Grawe, Nathan D., 2006. "Lifecycle bias in estimates of intergenerational earnings persistence," Labour Economics, Elsevier, vol. 13(5), pages 551-570, October.
  10. Angrist, Joshua D & Krueger, Alan B, 1995. "Split-Sample Instrumental Variables Estimates of the Return to Schooling," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 13(2), pages 225-35, April.
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Cited by:
  1. Andrea Ichino & Loukas Karabarbounis & Enrico Moretti, 2010. "The Political Economy of Intergenerational Income Mobility," NBER Working Papers 15946, National Bureau of Economic Research, Inc.
  2. Maribel Jiménez, 2011. "Un Análisis Empírico de las No Linealidades en la Movilidad Intergeneracional del Ingreso. El caso de la Argentina," CEDLAS, Working Papers, CEDLAS, Universidad Nacional de La Plata 0114, CEDLAS, Universidad Nacional de La Plata.
  3. Ryo Arawatari & Tetsuo Ono, 2009. "Inequality, Mobility and Redistributive Politics," Discussion Papers in Economics and Business 09-12, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  4. Lefranc, Arnaud & Ojima, Fumiaki & Yoshida, Takashi, 2012. "Intergenerational Earnings Mobility in Japan among Sons and Daughters: Levels and Trends," IZA Discussion Papers 7045, Institute for the Study of Labor (IZA).
  5. B. Ben-Halima & Nathalie Chusseau & Joel Hellier, 2013. "Skill premia and intergenerational education mobility: The French case," Working Papers 313, ECINEQ, Society for the Study of Economic Inequality.

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