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Intergenerational Earnings Persistence Across Ethnicities

Author

Listed:
  • Maré, David

    (Motu Economic and Public Policy Research Trust)

  • Alimi, Omoniyi

    (University of Waikato and World Bank)

Abstract

We estimate intergenerational earnings persistence for 6 ethnic groups using linked administrative data for approximately 288,000 individuals in New Zealand born between 1986 and 1992. Linking data from administrative datasets, censuses, and surveys, we focus on 198,000 parent-child pairs actively participating in the labour market. Our preferred IV rankrank slope which adjusts for earnings measurement error is 0.27, suggesting that children inherit roughly one-quarter of parental earnings advantage or disadvantage. We analyse relative and absolute persistence, variations by ethnicity and gender, and explore the role of observable characteristics. Finally, we discuss underlying factors influencing persistence, including the potential role of discrimination and racism in labour markets and broader society.

Suggested Citation

  • Maré, David & Alimi, Omoniyi, 2026. "Intergenerational Earnings Persistence Across Ethnicities," IZA Discussion Papers 18422, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18422
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    Keywords

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    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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