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The Intergenerational Income Mobility of Canadian Men

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Author Info
Corak, Miles
Heisz, Andrew

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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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File URL: http://www.statcan.gc.ca/bsolc/olc-cel/olc-cel?catno=11F0019M1996089&lang=eng
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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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Related research
Keywords: Labour; Income; pensions; spending and wealth; Wages; salaries and other earnings; Household; family and personal income; Low income and inequality;

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  1. 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. [Downloadable!]
  2. Beach, Charles M. & Finnie, Ross, 2004. "A Longitudinal Analysis of Earnings Change in Canada," Analytical Studies Branch Research Paper Series 2004227e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
    Other versions:
  3. v. Weizsäcker, Robert K., . "Chancengleichheit, Statusmobilität und öffentliche Bildungsinvestitionen," IVS discussion paper series 557, Institut für Volkswirtschaft und Statistik (IVS), University of Mannheim. [Downloadable!]
  4. 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. [Downloadable!] (restricted)
  5. Arnaud Lefranc & Alain Trannoy, 2004. "Intergenerational earnings mobility in France : Is France more mobile than the US ?," IDEP Working Papers 0401, Institut d'economie publique (IDEP), Marseille, France, revised Feb 2004. [Downloadable!]
    Other versions:
  6. Arnaud LEFRANC & Fumiaki OJIMA & Takashi YOSHIDA, 2008. "The Intergenerational Transmission of Income and Education: A Comparison of Japan and France," RSCAS Working Papers 2008/25, European University Institute. [Downloadable!]
  7. 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. [Downloadable!] (restricted)
  8. 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. [Downloadable!]
  9. 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. [Downloadable!]
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