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The Intergenerational Transmission of Income and Education: A Comparison of Japan and France

  • Arnaud LEFRANC
  • Fumiaki OJIMA
  • Takashi YOSHIDA

The paper compares the extent of intergenerational earnings and educational correlation in Japan and France. It uses very similar repeated surveys that provide information on educational attainment and family background, conducted in Japan and France. To insure comparability, similar sample restrictions and specifications are imposed. For Japan, we use waves 1965, 1975, 1985, 1995 and 2005. For France, we use waves 1965, 1970, 1977, 1985, 1993 and 2003. Intergenerational elasticity in years of education can be readily estimated using available information. On the other hand, intergenerational earnings elasticity cannot be directly measured given the lack of information on parental income in both surveys. This leads us to apply Bjorklund and Jantti (1999) two sample instrumental variables estimation strategy. Lastly, we discuss to what extent differences in earnings mobility is related to differences in educational mobility and to differences in returns to education between the two countries.

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Paper provided by European University Institute in its series RSCAS Working Papers with number 2008/25.

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Date of creation: 17 Jul 2008
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Handle: RePEc:rsc:rsceui:2008/25
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  1. Dominique Goux & Eric Maurin, 1998. "The Decline in Demand for Unskilled Labor : An Empirical Analysis Method and its Application to France," Working Papers 98-53, Centre de Recherche en Economie et Statistique.
  2. Arnaud LEFRANC, Alain TRANNOY - & Alain TRANNOY, 2005. "Intergenerational earnings mobility in France: Is France more mobile than the U.S.?," Annales d'Economie et de Statistique, ENSAE, issue 78, pages 57-77.
  3. 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.
  4. Bhashkar Mazumder, 2002. "Earnings Mobility in the US: A New Look at Intergenerational Inequality," Working Papers 02-11, Center for Economic Studies, U.S. Census Bureau.
  5. Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S1-39, July.
  6. Kenneth A. Couch & Thomas A. Dunn, 1997. "Intergenerational Correlations in Labor Market Status: A Comparison of the United States and Germany," Journal of Human Resources, University of Wisconsin Press, vol. 32(1), pages 210-232.
  7. Conlisk, John, 1974. "Can Equalization of Opportunity Reduce Social Mobility?," American Economic Review, American Economic Association, vol. 64(1), pages 80-90, March.
  8. Angrist, Joshua D & Krueger, Alan B, 1995. "Split-Sample Instrumental Variables Estimates of the Return to Schooling," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 225-35, April.
  9. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
  10. Grawe, Nathan D., 2006. "Lifecycle bias in estimates of intergenerational earnings persistence," Labour Economics, Elsevier, vol. 13(5), pages 551-570, October.
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