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The Intergenerational Earnings and Income Mobility of Canadian Men: Evidence from Longitudinal Income Tax Data

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  • Heisz, Andrew
  • Corak, Miles

Abstract

Our objective is to obtain an accurate estimate of the degree of intergenerational income mobility in Canada. We use income tax information on about 400,000 father-son pairs, and find intergenerational earnings elasticities to be about 0.2. Earnings mobility tends to be slightly greater than income mobility, but non-parametric techniques uncover significant non-linearities in both of these relationships. Intergenerational earnings mobility is greater at the lower end of the income distribution than at the upper end, and displays an inverted V-shape elsewhere. Intergenerational income mobility follows roughly the same pattern, but is much lower at the very top of the income distribution.

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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 1998113e.

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Date of creation: 27 Oct 1998
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Handle: RePEc:stc:stcp3e:1998113e

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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; Work transitions and life stages;

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  1. Goldberger, A.S., 1989. "Economic And Mechanical Models Of Intergenerational Transmission," Working papers, Wisconsin Madison - Social Systems 374, Wisconsin Madison - Social Systems.
  2. Hungerford, Thomas L, 1993. "U.S. Income Mobility in the Seventies and Eighties," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 39(4), pages 403-17, December.
  3. Gary Solon & Marianne E. Page & Greg J. Duncan, 2000. "Correlations Between Neighboring Children In Their Subsequent Educational Attainment," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 383-392, August.
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  6. Durlauf, Steven N, 1996. " A Theory of Persistent Income Inequality," Journal of Economic Growth, Springer, Springer, vol. 1(1), pages 75-93, March.
  7. Dearden, Lorraine & Machin, Stephen & Reed, Howard, 1997. "Intergenerational Mobility in Britain," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 107(440), pages 47-66, January.
  8. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, American Economic Association, vol. 82(3), pages 409-29, June.
  9. Bjorklund, Anders & Jantti, Markus, 1997. "Intergenerational Income Mobility in Sweden Compared to the United States," American Economic Review, American Economic Association, American Economic Association, vol. 87(5), pages 1009-18, December.
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  11. Benabou, Roland, 1994. "Human capital, inequality, and growth: A local perspective," European Economic Review, Elsevier, Elsevier, vol. 38(3-4), pages 817-826, April.
  12. Gustafsson, Bjorn, 1994. "The Degree and Pattern of Income Immobility in Sweden," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 40(1), pages 67-86, March.
  13. Behrman, Jere R & Taubman, Paul, 1990. "The Intergenerational Correlation between Children's Adult Earnings and Their Parents' Income: Result from the Michigan Panel Survey of Income Dynamics," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 36(2), pages 115-27, June.
  14. Couch, Kenneth A. & Lillard, Dean R., 1998. "Sample selection rules and the intergenerational correlation of earnings," Labour Economics, Elsevier, Elsevier, vol. 5(3), pages 313-329, September.
  15. Oliver LINTON, . "Applied nonparametric methods," Statistic und Oekonometrie, Humboldt Universitaet Berlin 9312, Humboldt Universitaet Berlin.
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  17. repec:att:wimass:9329 is not listed on IDEAS
  18. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800 Elsevier.
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  22. Härdle,Wolfgang, 1992. "Applied Nonparametric Regression," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521429504.
  23. Mary Corcoran & Roger Gordon & Deborah Laren & Gary Solon, 1992. "The Association between Men's Economic Status and Their Family and Community Origins," Journal of Human Resources, University of Wisconsin Press, vol. 27(4), pages 575-601.
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  1. Fewer than 1 percent of Americans are millionaires, but almost one in three believe theyâ??ll end up among that group at some point
    by zooeygoethe in Economic Objectorvism on 2007-12-14 00:18:17
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