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Intergenerational Mobility in Uruguay Using Income-Tax Administrative Data

Author

Listed:
  • Leites, Martin

    (Instituto de Economía, Universidad de la República)

  • Ramos, Xavier

    (Universitat Autònoma de Barcelona)

  • Rodríguez, Cecilia

    (Instituto de Economía, Universidad de la República)

  • Vilá, Joan

    (Instituto de Economía, Universidad de la República)

Abstract

We contribute to the very incipient literature that estimates the intergenerational mobility of income from large-scale administrative data using high-quality income data and provide novel evidence of intergenerational income mobility in a middle-income country, Uruguay. Our estimates address the important role of informal labor markets, one of the features of low- and middle-income countries, and a major challenge to obtain unbiased estimates of intergenerational mobility in these countries. We estimate an IRA of 0.292, indicating that persistence is higher in Uruguay than in high-income countries, but lower than in the US. Our results show that (i) informal income increases intergenerational persistence, (ii) intergenerational persistence is higher at the upper half of the distribution, especially at the richest decile, and (iii) intergenerational income persistence is largest among parents and children of the same sex.

Suggested Citation

  • Leites, Martin & Ramos, Xavier & Rodríguez, Cecilia & Vilá, Joan, 2026. "Intergenerational Mobility in Uruguay Using Income-Tax Administrative Data," IZA Discussion Papers 18642, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18642
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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy

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