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The role of education in enhancing intergenerational income mobility

  • Joann Wilkie

    (Treasury, Government of Australia)

Registered author(s):

    How income is transmitted from generation to generation is important to understanding the distributional impacts of policy. Compared with other OECD countries, labour income in Australia is relatively mobile across generations and Australia also has a moderate level of inequality, based on current household disposable income. OECD countries, with the exception of Canada, have either high inequality and low mobility or low inequality and high mobility. Education is an important factor influencing the extent to which income is transmitted from parent to child. The relatively high standard of minimum education outcomes in Australia and Canada, as reflected in the OECD’s Programme for International Student Assessment scores, are likely to play an important role in explaining Australia and Canada’s experience. Education outcomes alone, however, do not fully explain this combination of relatively high intergenerational income mobility and moderate income inequality.

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    File URL: http://archive.treasury.gov.au/documents/1329/PDF/05_The_role_of_education_in_enhancing_intergenerational_income_mobility.pdf
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    Article provided by The Treasury, Australian Government in its journal Economic Roundup.

    Volume (Year): (2007)
    Issue (Month): 4 (December)
    Pages: 81-100

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    Handle: RePEc:tsy:journl:journl_tsy_er_2007_4_1
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    1. Patrizio Piraino, 2006. "Comparable Estimates of Intergenerational Income Mobility in Italy," Department of Economics University of Siena 471, Department of Economics, University of Siena.
    2. James J. Heckman, 2007. "The Economics, Technology and Neuroscience of Human Capability Formation," NBER Working Papers 13195, National Bureau of Economic Research, Inc.
    3. Corak, Miles, 2006. "Do Poor Children Become Poor Adults? Lessons from a Cross Country Comparison of Generational Earnings Mobility," IZA Discussion Papers 1993, Institute for the Study of Labor (IZA).
    4. Pierre Lefebvre & Philip Merrigan, 1998. "Family Background, Family Income, Maternal Work and Child Development," Cahiers de recherche CREFE / CREFE Working Papers 78, CREFE, Université du Québec à Montréal.
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