Interpreting Trends in Intergenerational Income Mobility
We examine how intergenerational income mobility responds to structural changes in a simple theoretical model of intergenerational transmission, deviating from the existing literature by explicitly analyzing the transition path between steady states. We find that mobility depends not only on current but also on past transmission mechanisms, such that changing policies, institutions or economic conditions may generate long-lasting trends. Variation in mobility levels across countries may thus be partly explained by differences in former institutions; current mobility trends may be caused by institutional changes in the past. We further find that transitions between steady states tend to be non-monotonic. Changes in the relative returns to different skills or a shift towards a less plutocratic and more meritocratic economy raise mobility initially, but also generate a negative trend over subsequent generations. Times of change thus tend to be times of high mobility, and declining mobility today may not reflect a recent deterioration of equality of opportunity but rather major improvements made in the past.
|Date of creation:||Jul 2013|
|Date of revision:|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David H. Autor & Frank Levy & Richard J. Murnane, 2003.
"The Skill Content of Recent Technological Change: An Empirical Exploration,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 118(4), pages 1279-1333.
- David H. Autor & Frank Levy & Richard J. Murnane, 2003. "The skill content of recent technological change: an empirical exploration," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
- David H. Autor & Frank Levy & Richard J. Murnane, 2001. "The Skill Content of Recent Technological Change: An Empirical Exploration," NBER Working Papers 8337, National Bureau of Economic Research, Inc.
- Nybom, Martin & Stuhler, Jan, 2011.
"Heterogeneous Income Profiles and Life-Cycle Bias in Intergenerational Mobility Estimation,"
IZA Discussion Papers
5697, Institute for the Study of Labor (IZA).
- Martin Nybom & Jan Stuhler, 2016. "Heterogeneous Income Profiles and Lifecycle Bias in Intergenerational Mobility Estimation," Journal of Human Resources, University of Wisconsin Press, vol. 51(1), pages 239-268.
- Galor, O. & Tsiddon, D., 1996.
"Technological Progress, Mobility and Economic Growth,"
13-96, Tel Aviv.
- Galor, Oded & Tsiddon, Daniel, 1997. "Technological Progress, Mobility, and Economic Growth," American Economic Review, American Economic Association, vol. 87(3), pages 363-82, June.
- Galor, Oded & Tsiddon, Daniel, 1996. "Technological Progress, Mobility, and Economic Growth," CEPR Discussion Papers 1413, C.E.P.R. Discussion Papers.
- Ermisch, John & Nicoletti, Cheti, 2005.
"Intergenerational earnings mobility: changes across cohorts in Britain,"
ISER Working Paper Series
2005-19, Institute for Social and Economic Research.
- Nicoletti Cheti & Ermisch John F, 2008. "Intergenerational Earnings Mobility: Changes across Cohorts in Britain," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-38, January.
- A. B. Atkinson & S. P. Jenkins, 1984. "The Steady-State Assumption and the Estimation of Distributional and Related Models," Journal of Human Resources, University of Wisconsin Press, vol. 19(3), pages 358-376.
- Lars Lefgren & Matthew J. Lindquist & David Sims, 2012.
"Rich Dad, Smart Dad: Decomposing the Intergenerational Transmission of Income,"
Journal of Political Economy,
University of Chicago Press, vol. 120(2), pages 268 - 303.
- Lefgren, Lars & Lindquist, Matthew & Sims, David, 2009. "Rich Dad, Smart Dad: Decomposing the Intergenerational Transmission of Income," Research Papers in Economics 2009:19, Stockholm University, Department of Economics.
- Bhashkar Mazumder, 2005. "Fortunate Sons: New Estimates of Intergenerational Mobility in the United States Using Social Security Earnings Data," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 235-255, May.
- Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
- Daniel Aaronson & Bhashkar Mazumder, 2008. "Intergenerational Economic Mobility in the United States, 1940 to 2000," Journal of Human Resources, University of Wisconsin Press, vol. 43(1).
- Anthony Atkinson & Thomas Piketty & Emmanuel Saez, 2011.
"Top Incomes in the Long Run of History,"
- Björklund, Anders & Jäntti, Markus & Lindquist, Matthew J., 2007.
"Family Background and Income during the Rise of the Welfare State: Brother Correlations in Income for Swedish Men Born 1932-1968,"
IZA Discussion Papers
3000, Institute for the Study of Labor (IZA).
- Björklund, Anders & Jäntti, Markus & Lindquist, Matthew J., 2009. "Family background and income during the rise of the welfare state: Brother correlations in income for Swedish men born 1932-1968," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 671-680, June.
- Stuhler, Jan, 2012. "Mobility Across Multiple Generations: The Iterated Regression Fallacy," IZA Discussion Papers 7072, Institute for the Study of Labor (IZA).
- Lindqvist, Erik & Westman, Roine, 2009.
"The Labor Market Returns to Cognitive and Noncognitive Ability: Evidence from the Swedish Enlistment,"
Working Paper Series
794, Research Institute of Industrial Economics.
- Erik Lindqvist & Roine Vestman, 2011. "The Labor Market Returns to Cognitive and Noncognitive Ability: Evidence from the Swedish Enlistment," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 101-28, January.
- Jenkins, Stephen P, 1982. "Tools for the Analysis of distributional Models," The Manchester School of Economic & Social Studies, University of Manchester, vol. 50(2), pages 139-50, June.
- Tarjei Havnes & Magne Mogstad, 2011. "No Child Left Behind: Subsidized Child Care and Children's Long-Run Outcomes," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 97-129, May.
- Jeffrey S. Zax & Daniel I. Rees, 2002. "IQ, Academic Performance, Environment, and Earnings," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 600-616, November.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp7514. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.