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Intergenerational income mobility in France: A comparative and geographic analysis

Author

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  • Kenedi, Gustave
  • Sirugue, Louis

Abstract

We provide new estimates of intergenerational income mobility in France for children born in the 1970s using rich administrative data. Since parents’ incomes are not observed, we employ a two-sample two-stage least squares estimation. We show, using the Panel Study of Income Dynamics, that this method slightly underestimates rank-based measures of intergenerational persistence. Our results suggest France is characterized by a strong persistence relative to other developed countries. 9.7% of children born to parents in the bottom 20% reach the top 20% in adulthood, four times less than children from the top 20%. We uncover substantial spatial variations in intergenerational mobility across departments, and a positive relationship between geographic mobility and intergenerational upward mobility. The expected income rank of individuals from the bottom of the parent income distribution who moved towards high-income departments is around the same as the expected income rank of individuals from the 75th percentile who stayed in their childhood department.

Suggested Citation

  • Kenedi, Gustave & Sirugue, Louis, 2023. "Intergenerational income mobility in France: A comparative and geographic analysis," Journal of Public Economics, Elsevier, vol. 226(C).
    • Handle: RePEc:eee:pubeco:v:226:y:2023:i:c:s0047272723001561
    DOI: 10.1016/j.jpubeco.2023.104974
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    More about this item

    Keywords

    Intergenerational mobility; Geographic mobility; Spatial variations;
    All these keywords.

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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