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Intergenerational Earnings Mobility: Changes across Cohorts in Britain

  • Nicoletti Cheti

    ()

    (ISER, University of Essex)

  • Ermisch John F

    ()

    (ISER, University of Essex)

The aim of this paper is to analyze intergenerational earnings mobility in Britain for cohorts of sons born between 1950 and 1972. Since there are no British surveys with information on both sons’ and their fathers’ earnings covering the above period, we consider two separate samples from the British Household Panel Survey. We combine information from the two samples using the two-sample two-stage least squares estimator described by Arellano and Meghir (1992). Our main result shows that intergenerational earnings mobility was stable for the cohorts born between 1950 and 1960 and decreased statistically significantly among more recent cohorts, those born during 1961–1972.

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Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 7 (2008)
Issue (Month): 2 (January)
Pages: 1-38

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Handle: RePEc:bpj:bejeap:v:7:y:2008:i:2:n:9
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  1. Susan E. Mayer & Leonard M. Lopoo, 2005. "Has the Intergenerational Transmission of Economic Status Changed?," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
  2. Robert Erikson & John H. Goldthorpe, 2002. "Intergenerational Inequality: A Sociological Perspective," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 31-44, Summer.
  3. 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.
  4. Joshua D. Angrist & Alan B. Krueger, 1990. "The Effect of Age at School Entry on Educational Attainment: An Application of Instrumental Variables with Moments from Two Samples," NBER Working Papers 3571, National Bureau of Economic Research, Inc.
  5. Nickell, Stephen, 1982. "The Determinants of Occupational Success in Britain," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 43-53, January.
  6. Cheti Nicoletti & Marco Francesconi, 2006. "Intergenerational mobility and sample selection in short panels," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(8), pages 1265-1293.
  7. Solon, Gary, 1999. "Intergenerational mobility in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 29, pages 1761-1800 Elsevier.
  8. Bjorklund, Anders & Jantti, Markus, 1997. "Intergenerational Income Mobility in Sweden Compared to the United States," American Economic Review, American Economic Association, vol. 87(5), pages 1009-18, December.
  9. 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.
  10. Chul-In Lee & Gary Solon, 2009. "Trends in Intergenerational Income Mobility," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 766-772, November.
  11. Atsushi Inoue & Gary Solon, 2005. "Two-Sample Instrumental Variables Estimators," NBER Technical Working Papers 0311, National Bureau of Economic Research, Inc.
  12. John Ermisch & Marco Francesconi & Thomas Siedler, 2006. "Intergenerational Mobility and Marital Sorting," Economic Journal, Royal Economic Society, vol. 116(513), pages 659-679, 07.
  13. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," NBER Working Papers 11943, National Bureau of Economic Research, Inc.
  14. Samuel Bowles & Herbert Gintis, 2002. "The Inheritance of Inequality," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 3-30, Summer.
  15. M Arellano & Costas Megir & Mary Silles, 1990. "Female Labour Supply and On-the-Job Search: An Empirical Model Estimated using Complementary Data Sets," CEP Discussion Papers dp0009, Centre for Economic Performance, LSE.
  16. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
  17. repec:ese:iserwp:2002-02 is not listed on IDEAS
  18. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-29, June.
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