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Intergenerational income persistence within families

Author

Listed:
  • Chris Belfield

    (Institute for Fiscal Studies and Institute for Fiscal Studies)

  • Claire Crawford

    (Institute for Fiscal Studies and University of Birmingham)

  • Ellen Greaves

    (Institute for Fiscal Studies and University of Bristol)

  • Paul Gregg

    (Institute for Fiscal Studies)

  • Lindsey Macmillan

    (Institute for Fiscal Studies and University College London)

Abstract

There is substantial evidence of a significant relationship between parents’ income and sons’ earnings in the UK, and that this relationship has strengthened over time. We extend this by exploring a broader measure of net family income as an outcome. In doing so, we uncover three additional trends in social mobility. Partnership, and the level of earnings from any partner, are increasingly related to family background. The progressive direct tax and benefit system in the UK acts to offset intergenerational income persistence and has a stronger effect for the later cohort. Finally, men from higher-income backgrounds are significantly more likely than those from lower-income backgrounds to be in paid work and hence have higher incomes. Including out-of-work men in the analysis increases the estimates of intergenerational income persistence.

Suggested Citation

  • 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.
    • Handle: RePEc:ifs:ifsewp:17/11
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    References listed on IDEAS

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    Cited by:

    1. de Paula, Aureo & Attanasio, Orazio & Toppeta, Alessandro, 2020. "The Persistence of Socio-Emotional Skills Life Cycle and Intergenerational Evidence," CEPR Discussion Papers 15254, C.E.P.R. Discussion Papers.
    2. French, Eric Baird & O’Dea, Cormac & MacCuish, Jamie, 2021. "The Intergenerational Elasticity of Earnings: Exploring the Mechanisms," CEPR Discussion Papers 15975, C.E.P.R. Discussion Papers.
    3. Uta Bolt & Eric French & Jamie Hentall Maccuish & Cormac O’Dea, 2018. "Intergenerational Altruism and Transfers of Time and Money: A Life-cycle Perspective," Working Papers wp379, University of Michigan, Michigan Retirement Research Center.
    4. Bertha Rohenkohl, 2019. "Intergenerational Income Mobility in the UK:New evidence using the BHPS and Understanding Society," Working Papers 2019017, The University of Sheffield, Department of Economics.

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    Keywords

    income; inequality; intergenerational;
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