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Intergenerational Mobility in Australia

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  • Leigh Andrew

    () (Australian National University)

Abstract

Combining four surveys conducted over a forty year period, I calculate intergenerational earnings elasticities for Australia, using predicted earnings in parents' occupations as a proxy for actual parental earnings. In the most recent survey, the elasticity of sons' wages with respect to fathers' wages is around 0.2. Comparing this estimate with earlier surveys, I find little evidence that intergenerational mobility in Australia has significantly risen or fallen over time. Applying the same methodology to United States data, I find that Australian society exhibits more intergenerational mobility than the United States. My method appears to slightly overstate the degree of intergenerational mobility; if the true intergenerational earnings elasticity in the United States is 0.40.6 (as recent studies have suggested), then the intergenerational earnings elasticity in Australia is probably around 0.20.3.

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  • Leigh Andrew, 2007. "Intergenerational Mobility in Australia," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-28, December.
  • Handle: RePEc:bpj:bejeap:v:7:y:2007:i:2:n:6
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    1. Nicolas Hérault & Guyonne Kalb, 2016. "Intergenerational correlation of labor market outcomes," Review of Economics of the Household, Springer, pages 231-249.
    2. Johann K. Brunner & Susanne Pech, 2013. "Taxing Bequests and Consumption in the Steady State," CESifo Working Paper Series 4453, CESifo Group Munich.
    3. Maia Güell & José V. Rodríguez Mora & Christopher I. Telmer, 2014. "Intergenerational Mobility and the Informational Content of Surnames," Working Papers 2014-01, FEDEA.
    4. Black, Sandra E. & Devereux, Paul J., 2011. "Recent Developments in Intergenerational Mobility," Handbook of Labor Economics, Elsevier.
    5. Blanden, Jo, 2009. "How much can we learn from international comparisons of intergenerational mobility?," LSE Research Online Documents on Economics 28283, London School of Economics and Political Science, LSE Library.
    6. Doan, Quang Hung & Nguyen, Ngoc Anh, 2016. "Intergenerational Income Mobility in Vietnam," MPRA Paper 70603, University Library of Munich, Germany.
    7. Blanden, Jo, 2013. "Cross-national rankings of intergenerational mobility: a comparison of approaches from economics and sociology," LSE Research Online Documents on Economics 59310, London School of Economics and Political Science, LSE Library.
    8. Brian Nolan & Gosta Esping-Andersen & Christopher T. Whelan & Bertrand Maitre, 2010. "The Role of Social Institutions in Inter-Generational Mobility," Working Papers 201018, Geary Institute, University College Dublin.
    9. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Guell, Maia & Rodriguez Mora, Jose V. & Telmer, Chris, 2007. "Intergenerational mobility and the informative content of surnames," LSE Research Online Documents on Economics 19701, London School of Economics and Political Science, LSE Library.
    11. Cobb-Clark, Deborah A. & Dahmann, Sarah & Salamanca, Nicolas & Zhu, Anna, 2017. "Intergenerational Disadvantage: Learning about Equal Opportunity from Social Assistance Receipt," IZA Discussion Papers 11070, Institute for the Study of Labor (IZA).
    12. Andrea Ichino & Loukas Karabarbounis & Enrico Moretti, 2011. "The Political Economy Of Intergenerational Income Mobility," Economic Inquiry, Western Economic Association International, vol. 49(1), pages 47-69, January.
    13. Sajid Amin Javed & Mohammad Irfan, 2014. "Intergenerational Mobility: Evidence from Pakistan Panel Household Survey," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 53(2), pages 175-203.
    14. Qin, Xuezheng & Wang, Tianyu & Zhuang, Castiel Chen, 2016. "Intergenerational transfer of human capital and its impact on income mobility: Evidence from China," China Economic Review, Elsevier, vol. 38(C), pages 306-321.
    15. Dan Andrews & Andrew Leigh, 2009. "More inequality, less social mobility," Applied Economics Letters, Taylor & Francis Journals, pages 1489-1492.
    16. Quheng Deng & Björn Gustafsson & Shi Li, 2013. "Intergenerational Income Persistence in Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(3), pages 416-436, September.
    17. Honge Gong & Andrew Leigh & Xin Meng, 2012. "Intergenerational Income Mobility In Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(3), pages 481-503, September.
    18. Maribel Jiménez, 2011. "Un Análisis Empírico de las No Linealidades en la Movilidad Intergeneracional del Ingreso. El caso de la Argentina," CEDLAS, Working Papers 0114, CEDLAS, Universidad Nacional de La Plata.
    19. Nicholas Rohde & Kam Ki Tang & Prasada Rao, 2010. "Income Inequality, Mobility And Economic Insecurity In Australia," Discussion Papers Series 407, School of Economics, University of Queensland, Australia.
    20. Joann Wilkie, 2007. "The role of education in enhancing intergenerational income mobility," Economic Roundup, The Treasury, Australian Government, pages 81-100.
    21. Maribel Jiménez, 2016. "Movilidad Intergeneracional del Ingreso en Argentina. Un Análisis de sus Cambios Temporales desde el Enfoque de Igualdad de Oportunidades," CEDLAS, Working Papers 0203, CEDLAS, Universidad Nacional de La Plata.
    22. Kevin Pugh & Gigi Foster, 2014. "Australia's National School Data and the ‘Big Data’ Revolution in Education Economics," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 47(2), pages 258-268, June.
    23. Javier Núñez & Leslie Miranda, 2011. "Intergenerational income and educational mobility in urban Chile," Estudios de Economia, University of Chile, Department of Economics, vol. 38(1 Year 20), pages 195-221, June.
    24. Murray, Chelsea & Clark, Robert & Mendolia, Silvia & Siminski, Peter, 2017. "Direct Measures of Intergenerational Income Mobility for Australia," IZA Discussion Papers 11020, Institute for the Study of Labor (IZA).
    25. Corak, Miles & Curtis, Lori & Phipps, Shelley, 2010. "Economic Mobility, Family Background, and the Well-Being of Children in the United States and Canada," IZA Discussion Papers 4814, Institute for the Study of Labor (IZA).

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