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Measuring the link between intergenerational occupational mobility and earnings

Author

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  • Michele Raitano

    (UNIROMA - Università degli Studi di Roma "La Sapienza" = Sapienza University [Rome])

  • Francesco Vona

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

This paper investigates the relationship between family background and earnings using relative social mobility to decompose residual background correlations, namely the effect of background on earnings left after controlling for background-related intervening factors. Using the European Union Statistics on Income and Living Conditions for 8 countries, we first show that country differences in terms of intergenerational inequality concern residual background correlations and then decompose these correlations using changes in relative social positions. In immobile countries, we find that significant residual correlations are mainly driven by penalisation of upward mobility in the UK (glass ceiling) and by an insurance against downward mobility in Spain and Italy (parachute). In mobile countries, insignificant residual correlations mask heterogeneous returns to social mobility. While our findings for Southern countries hardly concur with human capital theory, the widespread emergence of glass ceiling effects appears to be consistent with this theory.

Suggested Citation

  • Michele Raitano & Francesco Vona, 2015. "Measuring the link between intergenerational occupational mobility and earnings," SciencePo Working papers Main hal-03459992, HAL.
    • Handle: RePEc:hal:spmain:hal-03459992
    DOI: 10.1007/s10888-014-9286-7
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03459992
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    References listed on IDEAS

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    1. Anders Björklund & Mikael Lindahl & Erik Plug, 2006. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(3), pages 999-1028.
    2. 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.
    3. Samuel Bowles & Herbert Gintis, 2002. "The Inheritance of Inequality," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 3-30, Summer.
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    Citations

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    Cited by:

    1. Andrea Ciccarelli & Marco Di Domizio & Elena Fabrizi, 2017. "Some Remarks On The Causal Relationship Between Family Backgrounds And Neet Status," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 71(3), pages 71-80, July-Sept.
    2. Andreoli, Francesco & Fusco, Alessio, 2019. "Robust cross-country analysis of inequality of opportunity," Economics Letters, Elsevier, vol. 182(C), pages 86-89.
    3. Céline Antonin & Mattia Guerini & Mauro Napoletano & Francesco Vona, 2019. "Italy : escaping the high debt and low-growth trap," Sciences Po publications info:hdl:2441/me28b7aoi8k, Sciences Po.
    4. Raitano Michele & Vona Francesco, 2018. "From the Cradle to the Grave: The Influence of Family Background on the Career Path of Italian Men," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 80(6), pages 1062-1088, December.
    5. repec:hal:spmain:info:hdl:2441/7d426vdmrr8am8khcm1fvu5adl is not listed on IDEAS
    6. repec:hal:spmain:info:hdl:2441/6dffcvpj8t96bpc00heumik4e0 is not listed on IDEAS
    7. Raitano Michele & Vona Francesco, 2018. "From the Cradle to the Grave: The Influence of Family Background on the Career Path of Italian Men," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 80(6), pages 1062-1088, December.
    8. Raitano, Michele & Vona, Francesco, 2021. "Nepotism vs. Specific Skills: The effect of professional liberalization on returns to parental background of Italian lawyers," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 489-505.
    9. repec:hal:spmain:info:hdl:2441/1vv4tl36f973o2k8aljdj1kll is not listed on IDEAS
    10. repec:hal:spmain:info:hdl:2441/me28b7aoi8k7qunqdg5qlgrqk is not listed on IDEAS
    11. Maurizio Franzini & Fabrizio Patriarca & Michele Raitano, 2020. "Market competition and parental background wage premium: the role of human and relational capital," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(3), pages 291-317, September.
    12. Daniel Reiter & Mario Thomas Palz & Margareta Kreimer, 2020. "Intergenerational transmission of economic success in Austria with a focus on migration and gender," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 54(1), pages 1-20, December.
    13. repec:hal:spmain:info:hdl:2441/7ebbvbelkk9oq90vtohpd2346t is not listed on IDEAS

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