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Intergenerational Earnings Inequality: New Evidence From Italy

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  • Teresa Barbieri
  • Francesco Bloise
  • Michele Raitano

Abstract

Using an innovative dataset built by merging survey and administrative data, we provide new estimates of intergenerational earnings’ inequality between fathers and sons in Italy, extending previous evidence in several directions. We rely on the TSTSLS method to predict fathers’ earnings and compute intergenerational elasticities and imputed rank–rank slopes, trying to reduce estimation biases. Confirming previous evidence, we find that Italy is characterized by a high intergenerational inequality in cross‐country comparison. Extending previous analyses, we show that the intergenerational association increases when sons at older ages and multi‐annual averages of pseudo‐fathers’ and sons’ earnings are considered. We also find that the intergenerational persistence differs across geographical macro‐areas and is high also for daughters, especially when family earnings are considered. Furthermore, estimates where possible mediating factors of the parental influence are included among the covariates show that a high intergenerational association persists when sons’ education and occupation are controlled for.

Suggested Citation

  • Teresa Barbieri & Francesco Bloise & Michele Raitano, 2020. "Intergenerational Earnings Inequality: New Evidence From Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(2), pages 418-443, June.
    • Handle: RePEc:bla:revinw:v:66:y:2020:i:2:p:418-443
    DOI: 10.1111/roiw.12420
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    2. Gustave Kenedi & Louis Sirugue, 2021. "The Anatomy of Intergenerational Income Mobility in France and its Spatial Variations," Working Papers halshs-03455282, HAL.
    3. Nancy A. Daza Báez, 2021. "«Intergenerational Earnings Mobility in Mexico»," Papers 2021_17, Centro de Estudios Espinosa Yglesias.
    4. D'ANDRIA Diego & DEBACKER Jason & EVANS Richard W. & PYCROFT Jonathan & ZACHLOD-JELEC Magdalena, 2021. "Taxing income or consumption: macroeconomic and distributional effects for Italy," JRC Working Papers on Taxation & Structural Reforms 2021-13, Joint Research Centre (Seville site).
    5. Bloise, Francesco & Chironi, Daniela & Pianta, Mario, 2019. "Inequality and elections in Italian regions," MPRA Paper 96416, University Library of Munich, Germany.
    6. Gustave Kenedi & Louis Sirugue, 2021. "The Anatomy of Intergenerational Income Mobility in France and its Spatial Variations," Working Papers hal-03812824, HAL.
    7. Gustave Kenedi & Louis Sirugue, 2021. "The Anatomy of Intergenerational Income Mobility in France and its Spatial Variations," SciencePo Working papers Main hal-03812824, HAL.
    8. Bonacini, Luca & Gallo, Giovanni & Scicchitano, Sergio, 2021. "Sometimes you cannot make it on your own. How household background influences chances of success in Italy," GLO Discussion Paper Series 832, Global Labor Organization (GLO).
    9. Velilla, Jorge, 2020. "Intergenerational correlation of self-employment in European countries," MPRA Paper 104184, University Library of Munich, Germany.
    10. Francesco Bloise & Michele Raitano, 2021. "Intergenerational Earnings Persistence in Italy between Actual Father–Son Pairs Accounting for Lifecycle and Attenuation Bias," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(1), pages 88-114, February.
    11. Gustave Kenedi & Louis Sirugue, 2021. "The Anatomy of Intergenerational Income Mobility in France and its Spatial Variations," PSE Working Papers halshs-03455282, HAL.
    12. Gimenez-Nadal, José Ignacio & Molina, José Alberto & Velilla, Jorge, 2020. "Short- vs Long-Term Intergenerational Correlations of Employment and Self-Employment in Europe," IZA Discussion Papers 12933, Institute of Labor Economics (IZA).
    13. Francesco Bloise & Michele Raitano, 2019. "Intergenerational earnings elasticity of actual father-son pairs in Italy accounting for lifecycle and attenuation bias," Working Papers 504, ECINEQ, Society for the Study of Economic Inequality.
    14. Javier Cortes Orihuela & Juan D. Díaz & Pablo Gutiérrez Cubillos & Pablo A. Troncoso, 2024. "Everything’s not lost: revisiting TSTSLS estimates of intergenerational mobility in developing countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(1), pages 66-94, February.

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