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Intergenerational Earnings Mobility in Japan among Sons and Daughters: Levels and Trends

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  • Lefranc, Arnaud

    () (University of Cergy-Pontoise)

  • Ojima, Fumiaki

    () (Doshisha University)

  • Yoshida, Takashi

    () (Shizuoka University)

Abstract

This paper estimates the extent of intergenerational income mobility in Japan among sons and daughters born between 1935 and 1975. Our estimates rely on a two-sample instrumental variables approach using representative data from the Japanese Social Stratification and Mobility (SSM) surveys, collected between 1965 and 2005. Father's income is predicted on the basis of a rich set of variables including education, occupation and job characteristics and we discuss changes in the Japanese earnings structure for cohorts born between the early 1900s and the 1960s. Our main results indicate that the intergenerational income elasticity (IGE) for both sons and daughters, in Japan lies around .35, which is an intermediate value, by international standards. We discuss the sensitivity of the IGE to using either personal or family income as the income variable for both fathers and children and perform some robustness analysis with respect to the first-step specification and to the age selection rule for children. We also examine changes across cohorts in the IGE. Results indicate that intergenerational mobility has been roughly stable over the last decades. Lastly, we estimate the intergenerational correlation of earnings.

Suggested Citation

  • Lefranc, Arnaud & Ojima, Fumiaki & Yoshida, Takashi, 2012. "Intergenerational Earnings Mobility in Japan among Sons and Daughters: Levels and Trends," IZA Discussion Papers 7045, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7045
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    References listed on IDEAS

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    Cited by:

    1. repec:spr:izamig:v:7:y:2017:i:1:d:10.1186_s40176-017-0104-4 is not listed on IDEAS
    2. Dang, Thang, 2015. "Intergenerational mobility of earnings and income among sons and daughters in Vietnam," MPRA Paper 75357, University Library of Munich, Germany.
    3. Chu, Luke Yu-Wei & Lin, Ming-Jen, 2016. "Economic development and intergenerational earnings mobility: Evidence from Taiwan," Working Paper Series 5272, Victoria University of Wellington, School of Economics and Finance.
    4. David Fairbrother & Renuka Mahadevan, 2016. "Do Education and Sex Matter for Intergenerational Earnings Mobility? Some Evidence from Australia," Australian Economic Papers, Wiley Blackwell, vol. 55(3), pages 212-226, September.
    5. repec:bla:jecrev:v:68:y:2017:i:4:p:470-496 is not listed on IDEAS

    More about this item

    Keywords

    intergenerational mobility; elasticity; correlation; earnings differentials; income; inequality; trends; Japan; assortative mating; education;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D3 - Microeconomics - - Distribution
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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