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The Anatomy of Intergenerational Income Mobility in France and its Spatial Variations

Author

Listed:
  • Gustave Kenedi

    (Institut d'Études Politiques [IEP] - Paris)

  • Louis Sirugue

    (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

We provide new estimates of intergenerational income mobility in France for children born in the 1970s using rich administrative data. Since parents' incomes are not observed, we employ a two-sample two-stage least squares estimation procedure. At the national level, every measure of intergenerational income persistence (intergenerational elasticities, rank-rank correlations, and transition matrices) suggests that France is characterized by relatively strong persistence relative to other developed countries. Children born to parents in the bottom 20% of their income distribution have a 10.1% probability of reaching the top 20% as adults. This probability is of 39.1% for children born to parents in the top 20%. At the local level, we find substantial spatial variations in intergenerational mobility. It is higher in the West of France and particularly low in the North and in the South. We uncover significant relationships between absolute upward mobility and characteristics of the environment an individual grew up in, such as the unemployment rate, population density, and income inequality.

Suggested Citation

  • Gustave Kenedi & Louis Sirugue, 2021. "The Anatomy of Intergenerational Income Mobility in France and its Spatial Variations," PSE Working Papers halshs-03455282, HAL.
  • Handle: RePEc:hal:psewpa:halshs-03455282
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-03455282
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    References listed on IDEAS

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    Cited by:

    1. Cécile Bonneau & Sébastien Grobon, 2022. "Unequal access to higher education based on parental income: evidence from France ," World Inequality Lab Working Papers halshs-03693195, HAL.
    2. Cécile Bonneau & Sébastien Grobon, 2022. "Unequal access to higher education based on parental income: evidence from France ," Working Papers halshs-03693195, HAL.
    3. Cécile Bonneau & Sébastien Grobon, 2022. "Unequal access to higher education based on parental income: evidence from France ," PSE Working Papers halshs-03693195, HAL.

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    Keywords

    France; Spatial variations; Measurement; Intergenerational mobility;
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