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Intergenerational earnings mobility in Chile: the tale of the upper tail

Author

Listed:
  • Javier Cortés Orihuela

    (University of British Columbia
    University of Chile)

  • Juan D. Díaz

    (University of Chile)

  • Pablo Gutiérrez Cubillos

    (University of Chile)

  • Pablo A. Troncoso

    (University of Houston)

  • Gabriel I. Villarroel

    (Dirección de Presupuestos (DIPRES))

Abstract

This paper provides the first estimates of intergenerational earnings mobility in Chile using administrative data linking parents’ and children’s earnings from the formal private sector. We calculate mobility measures across the earnings distribution, revealing high mobility in the bottom 80% and 65% of the parents’ and children’s distribution, respectively. However, we observe significant persistence in the upper tail of the earnings distribution. Additionally, we identify notable gender heterogeneities in these mobility patterns. Specifically, the intergenerational mobility gender gap shows a nonlinear relationship with respect to parental earnings. Furthermore, we find that differences in mobility between the upper tail of the earnings distribution and the rest of the population are more pronounced for daughters than for sons. These findings suggest that the dynamics of gender-based mobility at the upper tail of the earnings distribution differ from those observed in the rest of the population.

Suggested Citation

  • Javier Cortés Orihuela & Juan D. Díaz & Pablo Gutiérrez Cubillos & Pablo A. Troncoso & Gabriel I. Villarroel, 2024. "Intergenerational earnings mobility in Chile: the tale of the upper tail," Empirical Economics, Springer, vol. 67(5), pages 2411-2447, November.
    • Handle: RePEc:spr:empeco:v:67:y:2024:i:5:d:10.1007_s00181-024-02607-x
    DOI: 10.1007/s00181-024-02607-x
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    More about this item

    Keywords

    Intergenerational mobility; Administrative linked data; Gender heterogeneity;
    All these keywords.

    JEL classification:

    • 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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