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Rising Inequality, Declining Mobility: The Evolution of Intergenerational Mobility in Germany Abstract: This paper is the first to show that intergenerational income mobility in Germany has decreased over time. We estimate intergenerational persistence for the birth cohorts 1968-1987 and find that it rises sharply for cohorts born in the late 1970s and early 1980s, after which it stabilizes at a higher level. As a step towards understanding the mechanisms behind this increase, we show that parental income has become more important for educational outcomes of children. Moreover, we show that the increase in intergenerational persistence coincided with a surge in crosssectional income inequality, providing novel evidence for an “Intertemporal Great Gatsby Curveâ€

Author

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  • Julia Baarck

    (LMU Munich)

  • Moritz Bode

    (Department of Economics, University of Copenhagen)

  • Andreas Peichl

    (LMU Munich)

Abstract

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Suggested Citation

  • Julia Baarck & Moritz Bode & Andreas Peichl, 2025. "Rising Inequality, Declining Mobility: The Evolution of Intergenerational Mobility in Germany Abstract: This paper is the first to show that intergenerational income mobility in Germany has decreased ," CEBI working paper series 25-15, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    • Handle: RePEc:kud:kucebi:2515
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    File URL: https://www.econ.ku.dk/cebi/publikationer/working-papers/CEBI_WP_15-25.pdf
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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
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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