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Intergenerational Social Mobility in European OECD Countries

Author

Listed:
  • Orsetta Causa

    (OECD)

  • Sophie Dantan

    (University of Cergy-Pontoise)

  • Åsa Johansson

    (OECD)

Abstract

This paper breaks new ground by providing comparable estimates of intergenerational wage and education persistence across 14 European OECD countries based on a new micro data from Eurostat. A further novelty is that it examines the potential role of public policies and labour and product market institutions in explaining observed differences in intergenerational wage mobility across countries. The empirical estimates show that intergenerational wage persistence is relatively high in southern European countries, as well as in the United Kingdom. Likewise, intergenerational persistence in education is relatively high both in southern European countries and in Luxembourg and Ireland. By contrast, both persistence in wages and education tends to be lower in Nordic countries. In addition, empirical results show that education is one important driver of intergenerational wage persistence across European countries. There is a positive crosscountry correlation between intergenerational wage mobility and redistributive policies, as well as a positive correlation between wage-setting institutions that compress the wage distribution and mobility. Mobilité sociale intergénérationnelle dans les pays européens de l'OCDE Cet article comble une faille dans la littérature en présentant de nouvelles mesures harmonisées du degré de mobilité sociale intergénérationnelle de salaire et d’éducation pour 15 pays européens de l’OCDE, grâce à l’utilisation de nouvelles donnes microéconomiques publiées par Eurostat. Il analyse également le rôle des politiques en vigueur sur le marché du travail et sur le marché des produits dans l’explication des différences de mobilité entre pays. Les estimations suggèrent que la persistance intergénérationnelle des salaires est relativement élevée dans les pays du Sud de l’Europe, ainsi qu’au Royaume-Uni. De la même façon, la persistance intergénérationnelle du niveau d’éducation est relativement élevée dans les pays du Sud de l’Europe, ainsi qu’au Luxembourg. En revanche, la persistance intergénérationnelle, aussi bien du niveau de l’éducation que des salaires, est relativement faible dans les pays nordiques. De plus, les résultats empiriques montrent que dans les pays européens de l’OCDE, l’éducation est un vecteur important de la mobilité sociale intergénérationnelle. L’étude suggère qu’il existe une corrélation positive entre la mobilité sociale intergénérationnelle des salaires et la générosité des politiques de redistribution du revenu, résultat qui s’applique également à l’analyse de l’impact des instances de négociation collective qui compressent la grille salariale.

Suggested Citation

  • Orsetta Causa & Sophie Dantan & Åsa Johansson, 2009. "Intergenerational Social Mobility in European OECD Countries," OECD Economics Department Working Papers 709, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:709-en
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    File URL: http://dx.doi.org/10.1787/223043801483
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    Cited by:

    1. Joachim Frick & Kristina Krell, 2011. "Einkommensmessungen in Haushaltspanelstudien für Deutschland: Ein Vergleich von EU-SILC und SOEP," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 5(3), pages 221-248, December.
    2. Orsetta Causa & Alain de Serres & Nicolas Ruiz, 2015. "Can pro-growth policies lift all boats?: An analysis based on household disposable income," OECD Journal: Economic Studies, OECD Publishing, vol. 2015(1), pages 227-268.
    3. Jean-Marc Fournier & Åsa Johansson, 2016. "The Effect of the Size and the Mix of Public Spending on Growth and Inequality," OECD Economics Department Working Papers 1344, OECD Publishing.
    4. Kampelmann, Stephan & Rycx, Francois, 2011. "Does Institutional Diversity Account for Pay Rules in Germany and Belgium?," IZA Discussion Papers 6010, Institute for the Study of Labor (IZA).
    5. Gunther Tichy, 2015. "Protecting social inclusion and mobility in a low growth scenario," WWWforEurope Working Papers series 100, WWWforEurope.
    6. Bjørnskov, Christian & Dreher, Axel & Fischer, Justina A.V. & Schnellenbach, Jan & Gehring, Kai, 2013. "Inequality and happiness: When perceived social mobility and economic reality do not match," Journal of Economic Behavior & Organization, Elsevier, vol. 91(C), pages 75-92.
    7. Henrik Braconier & Giuseppe Nicoletti & Ben Westmore, 2015. "Policy challenges for the next 50 years," OECD Journal: Economic Studies, OECD Publishing, vol. 2015(1), pages 9-66.
    8. Francesco Vona, 2011. "Does the Expansion of Higher Education Reduce Educational Inequality? Evidence from 12 European Countries," Documents de Travail de l'OFCE 2011-12, Observatoire Francais des Conjonctures Economiques (OFCE).
    9. Tansel, Aysit, 2011. "Intergenerational educational mobility in Turkey," MPRA Paper 68435, University Library of Munich, Germany.
    10. Doan, Quang Hung & Nguyen, Ngoc Anh, 2016. "Intergenerational Income Mobility in Vietnam," MPRA Paper 70603, University Library of Munich, Germany.
    11. Brian Nolan & Gosta Esping-Andersen & Christopher T. Whelan & Bertrand Maitre, 2010. "The Role of Social Institutions in Inter-Generational Mobility," Working Papers 201018, Geary Institute, University College Dublin.
    12. Orsetta Causa & Mikkel Hermansen & Nicolas Ruiz, 2016. "The Distributional Impact of Structural Reforms," OECD Economics Department Working Papers 1342, OECD Publishing.
    13. Christian Daude & Virginia Robano, 2015. "On intergenerational (im)mobility in Latin America," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 24(1), pages 1-29, December.
    14. Joachim R. Frick & Kristina Krell, 2010. "Measuring Income in Household Panel Surveys for Germany: A Comparison of EU-SILC and SOEP," SOEPpapers on Multidisciplinary Panel Data Research 265, DIW Berlin, The German Socio-Economic Panel (SOEP).
    15. Borisov, Gleb V. & Pissarides, Christopher A., 2016. "The Intergenerational Transmission of Human Capital and Earnings in Contemporary Russia," IZA Discussion Papers 10300, Institute for the Study of Labor (IZA).
    16. Driouchi, Ahmed & Gamar, Alae, 2016. "The Gap between Educational & Social Intergenerational Mobility in Arab Countries," MPRA Paper 73998, University Library of Munich, Germany.

    More about this item

    Keywords

    données sur les ménages; education; household survey data; intergenerational education mobility; intergenerational wage mobility; mobilité sociale intergénérationnelle de l'éducation; mobilité sociale intergénérationnelle des salariés; politique publique; public policy; éducation;

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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