IDEAS home Printed from https://ideas.repec.org/p/fce/doctra/1103.html
   My bibliography  Save this paper

Measuring the link between intergenerational occupational mobility and earnings: evidence from 8 European Countries

Author

Abstract

This paper provides a novel glance on the relationship between family background and earnings applying a synthetic index of social mobility built on distributions of parental and offspring occupational statuses. Using the EU-SILC dataset for 8 countries, our analysis shows that country differences mainly concern residual background correlations, left after controlling for background-related intervening factors such as education and occupation. Significant residual correlations, observed in the UK and in Southern countries, mask respectively penalties to upward mobility and an insurance against downward mobility. Insignificant residual effects encompass significant penalties to both downward and upward mobility in Germany and France, a parachute for self-employed in Ireland and no patterns in Nordic countries. In quantile regressions, residual background correlations appear to increase along the earnings distribution. Even if we are not able to provide causal explanations, we suggest that in unequal countries results would hardly agree with a standard human capital explanation.

Suggested Citation

  • Michele Raitano & Francesco Vona, 2011. "Measuring the link between intergenerational occupational mobility and earnings: evidence from 8 European Countries," Documents de Travail de l'OFCE 2011-03, Observatoire Francais des Conjonctures Economiques (OFCE).
  • Handle: RePEc:fce:doctra:1103
    as

    Download full text from publisher

    File URL: http://www.ofce.sciences-po.fr/pdf/dtravail/WP2011-03.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hudson, John & Sessions, John G., 2011. "Parental education, labor market experience and earnings: New wine in an old bottle?," Economics Letters, Elsevier, vol. 113(2), pages 112-115.
    2. Chevalier, Arnaud & Conlon, Gavan, 2003. "Does It Pay to Attend a Prestigious University?," IZA Discussion Papers 848, Institute for the Study of Labor (IZA).
    3. Stephen Machin, 2011. "Houses and Schools: Valuation of School Quality through then Housing Market - EALE 2010 Presidential Address," CEP Occasional Papers 29, Centre for Economic Performance, LSE.
    4. Anders Björklund & Mikael Lindahl & Erik Plug, 2006. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data," The Quarterly Journal of Economics, Oxford University Press, vol. 121(3), pages 999-1028.
    5. Lam, David & Schoeni, Robert F, 1993. "Effects of Family Background on Earnings and Returns to Schooling: Evidence from Brazil," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 710-740, August.
    6. Michele Raitano & Francesco Vona, 2015. "Direct and Indirect Influences of Parental Background on Children's Earnings: a Comparison across Countries and Genders," Manchester School, University of Manchester, vol. 83(4), pages 423-450, July.
    7. 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.
    8. Marc Gurgand & Eric Maurin, 2007. "A large scale experiment: wages and educational expansion in France," PSE Working Papers halshs-00587884, HAL.
    9. Jo Blanden & Stephen Machin, 2013. "Educational Inequality and The Expansion of UK Higher Education," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(5), pages 578-596, November.
    10. Sveinn Agnarsson & Paul S. Carlin, 2002. "SFamily Background and the Estimated Return to Schooling: Swedish Evidenc," Journal of Human Resources, University of Wisconsin Press, vol. 37(3), pages 680-692.
    11. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    12. 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.
    13. Guell, Maia & Rodriguez Mora, Jose V. & Telmer, Chris, 2007. "Intergenerational mobility and the informative content of surnames," LSE Research Online Documents on Economics 19701, London School of Economics and Political Science, LSE Library.
    14. Miles Corak & Patrizio Piraino, 2011. "The Intergenerational Transmission of Employers," Journal of Labor Economics, University of Chicago Press, vol. 29(1), pages 37-68, January.
    15. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters,in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 257-298 National Bureau of Economic Research, Inc.
    16. Checchi, Daniele & Ichino, Andrea & Rustichini, Aldo, 1999. "More equal but less mobile?: Education financing and intergenerational mobility in Italy and in the US," Journal of Public Economics, Elsevier, vol. 74(3), pages 351-393, December.
    17. Hertz Tom & Jayasundera Tamara & Piraino Patrizio & Selcuk Sibel & Smith Nicole & Verashchagina Alina, 2008. "The Inheritance of Educational Inequality: International Comparisons and Fifty-Year Trends," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-48, January.
    18. Galor, Oded & Tsiddon, Daniel, 1997. "The Distribution of Human Capital and Economic Growth," Journal of Economic Growth, Springer, vol. 2(1), pages 93-124, March.
    19. Machin, Stephen, 2011. "Houses and schools: Valuation of school quality through the housing market," Labour Economics, Elsevier, vol. 18(6), pages 723-729.
    20. 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.
    21. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
    22. Bingley, Paul & Corak, Miles & Westergård-Nielsen, Niels C., 2011. "The Intergenerational Transmission of Employers in Canada and Denmark," IZA Discussion Papers 5593, Institute for the Study of Labor (IZA).
    23. Ganzeboom, H.B.G. & de Graaf, P.M. & Treiman, D.J. & de Leeuw, J., 1992. "A standard international socio-economic index of occupational status," WORC Paper 85970031-d601-46e3-befb-1, Tilburg University, Work and Organization Research Centre.
    24. Mark Granovetter, 2005. "The Impact of Social Structure on Economic Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 33-50, Winter.
    25. Bernt Bratsberg & Knut Røed & Oddbjørn Raaum & Robin Naylor & Markus Ja¨ntti & Tor Eriksson & Eva O¨sterbacka, 2007. "Nonlinearities in Intergenerational Earnings Mobility: Consequences for Cross-Country Comparisons," Economic Journal, Royal Economic Society, vol. 117(519), pages 72-92, March.
    26. Gabriela Schütz & Heinrich W. Ursprung & Ludger Wößmann, 2008. "Education Policy and Equality of Opportunity," Kyklos, Wiley Blackwell, vol. 61(2), pages 279-308, May.
    27. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2012. "The Intergenerational Transmission of Risk and Trust Attitudes," Review of Economic Studies, Oxford University Press, vol. 79(2), pages 645-677.
    28. Helena Holmlund & Mikael Lindahl & Erik Plug, 2011. "The Causal Effect of Parents' Schooling on Children's Schooling: A Comparison of Estimation Methods," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 615-651, September.
    29. Jo Blanden, 2013. "Cross-Country Rankings In Intergenerational Mobility: A Comparison Of Approaches From Economics And Sociology," Journal of Economic Surveys, Wiley Blackwell, vol. 27(1), pages 38-73, February.
    30. 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.
    31. Raitano Michele & Francesco Vona, 2015. "From the cradle to the grave : the effect of family background on the career path of italian men," Documents de Travail de l'OFCE 2015-05, Observatoire Francais des Conjonctures Economiques (OFCE).
    32. Dan Andrews & Andrew Leigh, 2009. "More inequality, less social mobility," Applied Economics Letters, Taylor & Francis Journals, vol. 16(15), pages 1489-1492.
    33. Bruce Sacerdote, 2007. "How Large are the Effects from Changes in Family Environment? A Study of Korean American Adoptees," The Quarterly Journal of Economics, Oxford University Press, vol. 122(1), pages 119-157.
    34. Michele Pellizzari, 2010. "Do Friends and Relatives Really Help in Getting a Good Job?," ILR Review, Cornell University, ILR School, vol. 63(3), pages 494-510, April.
    35. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-1189, December.
    36. Michele Raitano & Francesco Vona, 2015. "Measuring the link between intergenerational occupational mobility and earnings: evidence from eight European countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(1), pages 83-102, March.
    37. Samuel Bowles & Herbert Gintis, 2002. "The Inheritance of Inequality," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 3-30, Summer.
    38. Michele Raitano, 2011. "Intergenerational propagation of inequalities in Italy: education, occupation, earnings," Politica economica, Società editrice il Mulino, issue 3, pages 345-374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Silvia Avram & Olga Canto, 2016. "Labour outcomes and family background: Evidence from the EU during the recession," Working Papers 414, ECINEQ, Society for the Study of Economic Inequality.
    2. Michele Raitano & Francesco Vona, 2015. "Direct and Indirect Influences of Parental Background on Children's Earnings: a Comparison across Countries and Genders," Manchester School, University of Manchester, vol. 83(4), pages 423-450, July.
    3. Michele Raitano & Francesco Vona & Claudia Vittori, 2015. "The effect of parental background along the son's earnings distribution : does one model fit for all?," Sciences Po publications 2015-18, Sciences Po.
    4. Gabriella Berloffa & Eleonora Matteazzi & Paola Villa, 2016. "Family background and youth labour market outcomes across Europe," Working Papers 393, ECINEQ, Society for the Study of Economic Inequality.
    5. Michele Raitano & Francesco Vona, 2015. "Measuring the link between intergenerational occupational mobility and earnings: evidence from eight European countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 13(1), pages 83-102, March.
    6. Michele Raitano & Francesco Vona, 2015. "From the Cradle to the Grave: the Effect of Family Background on the Career Path of Italian Men," Working Papers 2015.74, Fondazione Eni Enrico Mattei.
    7. Francesco Vona, 2011. "Does the Expansion of Higher Education Reduce Educational Inequality? Evidence from 12 European Countries," Documents de Travail de l'OFCE 2011-12, Observatoire Francais des Conjonctures Economiques (OFCE).
    8. repec:taf:apeclt:v:23:y:2016:i:15:p:1073-1078 is not listed on IDEAS
    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.

    More about this item

    Keywords

    intergenerational occupational mobility; index of social mobility; economic returns to intergenerational occupational mobility; international comparison.;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fce:doctra:1103. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Francesco Saraceno). General contact details of provider: http://edirc.repec.org/data/ofcspfr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.