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Careers and Intergenerational Income Mobility

Author

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  • Catherine Haeck
  • Jean-William Laliberté

Abstract

This paper uses census microdata linked with tax records to quantify the contribution of occupations to intergenerational income mobility. We document substantial segregation into occupations by parental income. Children of high-income parents are significantly more likely to pursue high-paying and more desirable occupations. Since parents may pass on their occupations to their children, we further describe patterns of intergenerational occupational following and show they vary substantially across occupations, with low-income occupations showing more persistence across generations on average. Yet, occupational persistence plays a limited role for income mobility, explaining only 10 percent of the income rank-rank relationship.

Suggested Citation

  • Catherine Haeck & Jean-William Laliberté, 2025. "Careers and Intergenerational Income Mobility," American Economic Journal: Applied Economics, American Economic Association, vol. 17(1), pages 431-458, January.
    • Handle: RePEc:aea:aejapp:v:17:y:2025:i:1:p:431-58
    DOI: 10.1257/app.20230403
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    Cited by:

    1. Likun Mao & Sarah Grace See, 2025. "Early Exposure, ICT Use, and Teenage Well being Outcomes," CHILD Working Papers Series 121 JEL Classification: I, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    2. Maria Ventura, 2025. "Following in the family footsteps: Incidence and returns of occupational persistence," CEP Discussion Papers dp2121, Centre for Economic Performance, LSE.
    3. Julien Grenet & Hans Grönqvist & Edvin Hertegård & Martin Nybom & Jan Stuhler, 2024. "How Early Career Choices Adjust to Economic Crises," Working Papers halshs-04431902, HAL.
    4. Nguyen, Ha Trong & Zając, Tomasz & Tomaszewski, Wojtek & Mitrou, Francis, 2025. "Educational pathways and earnings trajectories of second-generation immigrants in Australia: New insights from linked census-administrative data," Economics of Education Review, Elsevier, vol. 109(C).

    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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