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Intergenerational Persistence in Income and Social Class: The Impact of Within-Group Inequality

Author

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  • Jo Blanden
  • Paul Gregg
  • Lindsey Macmillan

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Abstract

Family income is found to be more closely related to sons' earnings for those born in 1970 compared to those born in 1958. This result is in stark contrast to the finding on the basis of social class; intergenerational mobility for this outcome is found to be unchanged. We set up a formal framework which relates mobility in measured family income/earnings to mobility in social class. Building on this framework we then test a number of hypotheses to explain the difference between the trends. We reject Erikson and Goldthorpe’s (2009) assertion that the divergent results are driven by the poorer measure of permanent family income in the 1958. Instead we find evidence of an increase in the intergenerational persistence of the permanent component of income that is unrelated to social class.

Suggested Citation

  • Jo Blanden & Paul Gregg & Lindsey Macmillan, 2010. "Intergenerational Persistence in Income and Social Class: The Impact of Within-Group Inequality," The Centre for Market and Public Organisation 10/230, Department of Economics, University of Bristol, UK.
  • Handle: RePEc:bri:cmpowp:10/230
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    File URL: http://www.bristol.ac.uk/cmpo/publications/papers/2010/wp230.pdf
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    References listed on IDEAS

    as
    1. Jo Blanden & Paul Gregg & Lindsey Macmillan, 2007. "Accounting for Intergenerational Income Persistence: Noncognitive Skills, Ability and Education," Economic Journal, Royal Economic Society, vol. 117(519), pages 43-60, March.
    2. Black, Sandra E. & Devereux, Paul J., 2011. "Recent Developments in Intergenerational Mobility," Handbook of Labor Economics, Elsevier.
    3. Jo Blanden, 2009. "How Much Can We Learn from International Comparisons of Intergenerational Mobility?," CEE Discussion Papers 0111, Centre for the Economics of Education, LSE.
    4. Jo Blanden, 2004. "Family Income and Educational Attainment: A Review of Approaches and Evidence for Britain," Oxford Review of Economic Policy, Oxford University Press, vol. 20(2), pages 245-263, Summer.
    5. Corak,Miles (ed.), 2004. "Generational Income Mobility in North America and Europe," Cambridge Books, Cambridge University Press, number 9780521827607, May.
    6. McIntosh, James & Munk, Martin D., 2009. "Social class, family background, and intergenerational mobility," European Economic Review, Elsevier, vol. 53(1), pages 107-117, January.
    7. Philip Oreopoulos & Marianne Page & Ann Huff Stevens, 2008. "The Intergenerational Effects of Worker Displacement," Journal of Labor Economics, University of Chicago Press, vol. 26(3), pages 455-483, July.
    8. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," American Economic Review, American Economic Association, vol. 96(4), pages 1308-1320, September.
    9. Peter Gottschalk & Minh Huynh, 2010. "Are Earnings Inequality and Mobility Overstated? The Impact of Nonclassical Measurement Error," The Review of Economics and Statistics, MIT Press, vol. 92(2), pages 302-315, May.
    10. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
    11. Nathan D . Grawe, 2004. "The 3-day Week of 1974 and Earnings Data Reliability in the Family Expenditure Survey and the National Child Development Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(4), pages 567-579, September.
    12. Anders Björklund & Markus Jäntti, 2000. "Intergenerational mobility of socio-economic status in comparative perspective," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 26, pages 3-32.
    13. Dickens, Richard, 2000. "The Evolution of Individual Male Earnings in Great Britain: 1975-95," Economic Journal, Royal Economic Society, vol. 110(460), pages 27-49, January.
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    Cited by:

    1. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Jo Blanden, 2009. "How Much Can We Learn from International Comparisons of Intergenerational Mobility?," CEE Discussion Papers 0111, Centre for the Economics of Education, LSE.
    3. Arnaud Chevalier & Colm Harmon & Vincent O'Sullivan & Ian Walker, 2011. "The Impact of Parental Earnings and Education on the Schooling of Children," Working Papers 201112, Geary Institute, University College Dublin.
    4. repec:bla:obuest:v:79:y:2017:i:1:p:79-100 is not listed on IDEAS
    5. Nybom, Martin & Stuhler, Jan, 2014. "Interpreting Trends in Intergenerational Mobility," Working Paper Series 3/2014, Stockholm University, Swedish Institute for Social Research.
    6. Jo Blanden & Robert Haveman & Timothy Smeeding & Kathryn Wilson, 2014. "Intergenerational Mobility in the United States and Great Britain: A Comparative Study of Parent–Child Pathways," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(3), pages 425-449, September.
    7. Bukodi, Erzsébet & Goldthorpe, John H. & Waller, Lorraine & Kuha, Jouni, 2015. "The mobility problem in Britain: new findings from the analysis of birth cohort data," LSE Research Online Documents on Economics 60249, London School of Economics and Political Science, LSE Library.
    8. Lindsey Macmillan & Claire Tyler & Anna Vignoles, 2013. "Who gets the Top Jobs? The role of family background and networks in recent graduates' access to high status professions," DoQSS Working Papers 13-15, Department of Quantitative Social Science - UCL Institute of Education, University College London.
    9. Paul Gregg & Lindsey Macmillan & Claudia Vittori, 2015. "Nonlinear Estimation of Lifetime Intergenerational Economic Mobility and the Role of Education," DoQSS Working Papers 15-03, Department of Quantitative Social Science - UCL Institute of Education, University College London.
    10. Jo Blanden & Stephen Machin, 2017. "Home ownership and social mobility," CentrePiece - The Magazine for Economic Performance 508, Centre for Economic Performance, LSE.
    11. Paul Gregg & Jan. O. Jonsson & Lindsey Macmillan & Carina Mood, 2013. "Understanding income mobility: the role of education for intergenerational income persistence in the US, UK and Sweden," DoQSS Working Papers 13-12, Department of Quantitative Social Science - UCL Institute of Education, University College London.
    12. Joanne Lindley & Stephen Machin, 2012. "The Quest for More and More Education: Implications for Social Mobility," Fiscal Studies, Institute for Fiscal Studies, vol. 33(2), pages 265-286, June.
    13. Blanden, Jo, 2013. "Cross-national rankings of intergenerational mobility: a comparison of approaches from economics and sociology," LSE Research Online Documents on Economics 59310, London School of Economics and Political Science, LSE Library.
    14. Andrew Dickerson & Gurleen Popli, 2015. "The many dimensions of child poverty: Evidence from the UK Millennium Cohort Study," Working Papers 2015009, The University of Sheffield, Department of Economics.
    15. Paul Gregg & Lindsey MacMillan & Claudia Vittori, 2014. "Moving Towards Estimating Lifetime Intergenerational Economic Mobility in the UK," The Centre for Market and Public Organisation 14/332, Department of Economics, University of Bristol, UK.
    16. Chris Belfield & Claire Crawford & Ellen Greaves & Paul Gregg & Lindsey Macmillan, 2017. "Intergenerational income persistence within families," IFS Working Papers W17/11, Institute for Fiscal Studies.
    17. Blanden, Jo & Macmillan, Lindsey, 2014. "Education and intergenerational mobility: help or hindrance?," LSE Research Online Documents on Economics 58047, London School of Economics and Political Science, LSE Library.
    18. Jo Blanden & Lindsey Macmillan, 2014. "Education and Intergenerational Mobility: Help or Hindrance?," CASE Papers case179, Centre for Analysis of Social Exclusion, LSE.
    19. Lindsey Macmillan, 2011. "Measuring the intergenerational correlation of worklessness," The Centre for Market and Public Organisation 11/278, Department of Economics, University of Bristol, UK.
    20. Marcenaro Gutierrez, Oscar & Micklewright, John & Vignoles, Anna, 2014. "Social Mobility and the Importance of Networks: Evidence for Britain," IZA Discussion Papers 8380, Institute for the Study of Labor (IZA).
    21. repec:cep:sticas:/179 is not listed on IDEAS
    22. repec:bri:cmpowp:13/332 is not listed on IDEAS
    23. Yaojun Li & Fiona Devine, 2011. "Is Social Mobility Really Declining? Intergenerational Class Mobility in Britain in the 1990s and the 2000s," Sociological Research Online, Sociological Research Online, vol. 16(3), pages 1-4.

    More about this item

    Keywords

    Intergenerational mobility; Earnings; social class;

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • I2 - Health, Education, and Welfare - - Education
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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