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Exploring the sources of earnings transmission in Spain

  • Cervini-Plá, María

This paper explores the mechanisms behind the intergenerational earnings mobility in Spain by means of three exercises: calculating the transition matrix, decomposing the sources of earnings elasticity and estimating quantile earnings regressions. By calculating the transition matrices we find a strong degree of persistence in educational attainment and especially in occupation. By decomposing the sources of earnings elasticity across generations, we find that the correlation between children's and their fathers' occupations is the most important component. Finally, quantile regressions estimates show that the influence of the father's earnings is greater when we move to the lower tail of the offspring's earnings distribution, especially in the case of daughters' earnings.

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File URL: http://mpra.ub.uni-muenchen.de/36093/1/MPRA_paper_36093.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36093.

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Date of creation: 20 Jan 2012
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Handle: RePEc:pra:mprapa:36093
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  1. Francesconi, Marco & Nicoletti, Cheti, 2004. "Intergenerational mobility and sample selection in short panels," ISER Working Paper Series 2004-17, Institute for Social and Economic Research.
  2. Atsushi Inoue & Gary Solon, 2005. "Two-Sample Instrumental Variables Estimators," NBER Technical Working Papers 0311, National Bureau of Economic Research, Inc.
  3. Adriana Sánchez Hugalde, 2004. "Movilidad intergeneracional de ingresos y educativa en España (1980-90)," Working Papers 2004/1, Institut d'Economia de Barcelona (IEB).
  4. Cervini-Plá, María, 2011. "Intergenerational earnings and income mobility in Spain," MPRA Paper 34942, University Library of Munich, Germany.
  5. Checchi, Daniele & Ichino, Andrea & Rustichini, Aldo, 1999. "More equal but less mobile?: Education financing and intergenerational mobility in Italy and in the US," Journal of Public Economics, Elsevier, vol. 74(3), pages 351-393, December.
  6. Steven Haider & Gary Solon, 2006. "Life-Cycle Variation in the Association between Current and Lifetime Earnings," NBER Working Papers 11943, National Bureau of Economic Research, Inc.
  7. Murphy, Kevin M & Topel, Robert H, 1985. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(4), pages 370-79, October.
  8. Nicoletti, Cheti, 2008. "Multiple sample selection in the estimation of intergenerational occupational mobility," ISER Working Paper Series 2008-20, Institute for Social and Economic Research.
  9. John Ermisch & Marco Francesconi & Thomas Siedler, 2004. "Intergenerational Economic Mobility and Assortative Mating," Discussion Papers of DIW Berlin 448, DIW Berlin, German Institute for Economic Research.
  10. Maoz, Yishay D & Moav, Omer, 1999. "Intergenerational Mobility and the Process of Development," Economic Journal, Royal Economic Society, vol. 109(458), pages 677-97, October.
  11. Piraino Patrizio, 2007. "Comparable Estimates of Intergenerational Income Mobility in Italy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-27, October.
  12. Arellano, Manuel & Meghir, Costas, 1992. "Female Labour Supply and On-the-Job Search: An Empirical Model Estimated Using Complementary Data Sets," Review of Economic Studies, Wiley Blackwell, vol. 59(3), pages 537-59, July.
  13. Osterbacka, Eva, 2001. " Family Background and Economic Status in Finland," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(3), pages 467-84, September.
  14. Cheti Nicoletti & Marco Francesconi, 2006. "Intergenerational mobility and sample selection in short panels," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(8), pages 1265-1293.
  15. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 257-298 National Bureau of Economic Research, Inc.
  16. Han, Song & Mulligan, Casey B, 2001. "Human Capital, Heterogeneity and Estimated Degrees of Intergenerational Mobility," Economic Journal, Royal Economic Society, vol. 111(470), pages 207-43, April.
  17. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-29, June.
  18. Bjorklund, Anders & Jantti, Markus, 1997. "Intergenerational Income Mobility in Sweden Compared to the United States," American Economic Review, American Economic Association, vol. 87(5), pages 1009-18, December.
  19. Galor, O. & Tsiddon, D., 1996. "The Distribution of Human Capital and Economic Growth," Papers 18-96, Tel Aviv - the Sackler Institute of Economic Studies.
  20. Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
  21. Robert Erikson & John H. Goldthorpe, 2002. "Intergenerational Inequality: A Sociological Perspective," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 31-44, Summer.
  22. Casey B. Mulligan, 1999. "Galton versus the Human Capital Approach to Inheritance," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S184-S224, December.
  23. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  24. 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.
  25. Becker, Gary S & Tomes, Nigel, 1979. "An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1153-89, December.
  26. Mocetti Sauro, 2007. "Intergenerational Earnings Mobility in Italy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(2), pages 1-25, December.
  27. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
  28. Arnaud Lefranc & Alain Trannoy, 2004. "Intergenerational earnings mobility in France : Is France more mobile than the US ?," IDEP Working Papers 0401, Institut d'economie publique (IDEP), Marseille, France, revised Feb 2004.
  29. repec:cup:cbooks:9780521827607 is not listed on IDEAS
  30. 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.
  31. Samuel Bowles & Herbert Gintis, 2002. "The Inheritance of Inequality," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 3-30, Summer.
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