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The Intergenerational Income Mobility of Canadian Men

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  • Heisz, Andrew
  • Corak, Miles

Abstract

In this paper we use administrative data associated with the tax system to: (1) document the extent of intergenerational income mobility among Canadian men; and (2) estimate the income disadvantage (in adulthood) of being raised in a low income household. We find that there is considerable intergenerational income mobility in Canada among middle income earners, but that the inheritance of economic status is significant at both the very top and very bottom of the income distribution. About one-third of those in the bottom quartile were raised by fathers who occupied the same position in the income distribution. In fact, the income advantage of someone who had a father in the top decile over someone who had a father in the bottom decile is in the order of 40%. We also discuss some of the policy implications of these findings, as well as some of their limitations and the directions implied for future research.

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Bibliographic Info

Paper provided by Statistics Canada, Analytical Studies Branch in its series Analytical Studies Branch Research Paper Series with number 1996089e.

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Date of creation: 24 Jan 1996
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Handle: RePEc:stc:stcp3e:1996089e

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Web page: http://www.statcan.gc.ca
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Related research

Keywords: Household; family and personal income; Income; pensions; spending and wealth; Labour; Low income and inequality; Wages; salaries and other earnings;

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Cited by:
  1. Yuksel, Mutlu, 2009. "Intergenerational Mobility of Immigrants in Germany: Moving with Natives or Stuck in their Neighborhoods?," IZA Discussion Papers 4677, Institute for the Study of Labor (IZA).
  2. Gaviria, Alejandro, 2002. "Intergenerational mobility, sibling inequality and borrowing constraints," Economics of Education Review, Elsevier, vol. 21(4), pages 331-340, August.
  3. Weizsäcker, Robert K. von, 1997. "Chancengleichheit, Statusmobilität und öffentliche Bildungsinvestitionen," Discussion Papers 557, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
  4. Grawe, Nathan D., 2001. "In Search of Intergenerational Credit Constraints Among Canadian Men: Quantile Versus Mean Regression Tests for Binding Credit Constraints," Analytical Studies Branch Research Paper Series 2001158e, Statistics Canada, Analytical Studies Branch.
  5. Corak, Miles, 2001. "Are the Kids All Right? Intergenerational Mobility and Child Well-being in Canada," Analytical Studies Branch Research Paper Series 2001171e, Statistics Canada, Analytical Studies Branch.
  6. 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.
  7. Charles Beach & Ross Finnie, 2004. "A longitudinal analysis of earnings change in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 37(1), pages 219-240, February.
  8. Donal O’Neill & Olive Sweetman & Dirk Van de gaer, 2007. "The effects of measurement error and omitted variables when using transition matrices to measure intergenerational mobility," Journal of Economic Inequality, Springer, vol. 5(2), pages 159-178, August.
  9. Nathan Grawe, 2008. "The quality–quantity trade-off in fertility across parent earnings levels: a test for credit market failure," Review of Economics of the Household, Springer, vol. 6(1), pages 29-45, March.
  10. Jo Blanden, 2009. "How Much Can We Learn from International Comparisons of Intergenerational Mobility?," CEE Discussion Papers, Centre for the Economics of Education, LSE 0111, Centre for the Economics of Education, LSE.
  11. Gil S. Epstein & Tikva Lecker, 2001. "Multi-Generation Model of Immigrant Earnings: Theory and Application," Working Papers 2001-06, Bar-Ilan University, Department of Economics.
  12. Grawe, Nathan D., 2003. "Life Cycle Bias in the Estimation of Intergenerational Earnings Persistence," Analytical Studies Branch Research Paper Series 2003207e, Statistics Canada, Analytical Studies Branch.

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