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Intergenerational income mobility: New evidence from the UK

Author

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  • Bertha Rohenkohl

    (The University of Sheffield
    Institute for the Future of Work)

Abstract

Using a new dataset combining the British Household Panel Survey (BHPS) and Understanding Society (UKHLS), this paper examines the current state of intergenerational income mobility in the UK. This extends previous evidence in several directions, with a focus on younger cohorts of individuals born between 1973 and 1992. I find evidence of considerable intergenerational persistence in the transmission of resources at the household level with an intergenerational elasticity of 0.26 and a rank coefficient of 0.30. This picture of mobility remains at the individual level and under a range of robustness tests that address traditional methodological concerns. While mobility is relatively low at the national level, I find meaningful differences in income mobility rates across the country. More generally, regions with lower income in the North of England display substantially lower levels of both relative and absolute income mobility than regions in the South.

Suggested Citation

  • Bertha Rohenkohl, 2023. "Intergenerational income mobility: New evidence from the UK," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 21(4), pages 789-814, December.
    • Handle: RePEc:spr:joecin:v:21:y:2023:i:4:d:10.1007_s10888-023-09577-7
    DOI: 10.1007/s10888-023-09577-7
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    More about this item

    Keywords

    Intergenerational mobility; Income mobility; Regional analysis;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • 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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