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Intergenerational Earnings Mobility and Equality of Opportunity in South Africa

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  • Patrizio Piraino

Abstract

The paper estimates the degree of intergenerational earnings persistence in South Africa. It explores the link between this measure of social mobility and an index of inequality of opportunity. Using microdata from the National Income Dynamics Study (NIDS), the paper finds that intergenerational earnings mobility in South Africa is low. In addition, a limited set of inherited circumstances explains a significant fraction of earnings inequality among male adults. Adding South Africa to the existing international literature supports the hypothesis that low levels of intergenerational mobility and equality of opportunity are emblematic of high-inequality emerging economies.

Suggested Citation

  • Patrizio Piraino, 2014. "Intergenerational Earnings Mobility and Equality of Opportunity in South Africa," Working Papers 448, Economic Research Southern Africa.
  • Handle: RePEc:rza:wpaper:448
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    File URL: https://www.econrsa.org/node/921
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    Citations

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    Cited by:

    1. Ana Suárez Álvarez & Ana Jesús López Menéndez, 2018. "Inequality of Opportunity in Developing countries: Does the income aggregate matter?," LIS Working papers 739, LIS Cross-National Data Center in Luxembourg.
    2. Ana Suárez Álvarez & Ana Jesús López Menéndez, 2020. "Trends in Inequality of Opportunity for Developing Countries: Does the Economic Indicator Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(2), pages 503-539, June.
    3. Vito Peragine & Federico Biagi, 2019. "Equality of opportunity: theory, measurement and policy implications," JRC Working Papers JRC118542, Joint Research Centre (Seville site).
    4. Paolo Brunori & Flaviana Palmisano & Vitorocco Peragine, 2019. "Inequality of opportunity in sub-Saharan Africa," Applied Economics, Taylor & Francis Journals, vol. 51(60), pages 6428-6458, December.
    5. Hackl, Andreas, 2018. "Mobility equity in a globalized world: Reducing inequalities in the sustainable development agenda," World Development, Elsevier, vol. 112(C), pages 150-162.
    6. Aydemir, Abdurrahman B. & Yazici, Hakki, 2019. "Intergenerational education mobility and the level of development," European Economic Review, Elsevier, vol. 116(C), pages 160-185.
    7. Ivan Turok & Josh Budlender & Justin Visagie, 2017. "The Role of Informal Urban Settlements in Upward Mobility," Working Papers 201701, University of Cape Town, Development Policy Research Unit.
    8. Haile, Getinet Astatike, 2016. "Intergenerational Mobility in Income and Economic Status in Ethiopia," IZA Discussion Papers 10047, Institute of Labor Economics (IZA).
    9. Monica P. Lambon-Quayefio & Robert D. Osei & Abena D. Oduro & Isaac Osei Akoto, 2020. "Understanding the relationship between Consumption Inequality, Inequality of Opportunity and Education Outcomes in Ghana," Working Paper 7fb837eb-0c6e-4b0e-973b-7, Agence française de développement.
    10. John Jerrim & Álvaro Choi & Rosa Simancas Rodríguez, 2014. "Two-sample two-stage least squares (TSTSLS) estimates of earnings mobility: how consistent are they?," Working Papers 2014/35, Institut d'Economia de Barcelona (IEB).
    11. John Jerrim & Alvaro Choi & Rosa Simancas Rodriguez, 2014. "Two-Sample Two-Stage Least Squares (TSTSLS) estimates of earnings mobility: how consistent are they?," DoQSS Working Papers 14-17, Quantitative Social Science - UCL Social Research Institute, University College London.
    12. Ana Suárez Álvarez & Ana Jesús López Menéndez, 2016. "Inequality of opportunity and income inequality in Spain: An analysis over time," Working Papers 423, ECINEQ, Society for the Study of Economic Inequality.
    13. Dieter Fintel & Dorrit Posel, 2016. "Errors in Recalling Childhood Socio-economic Status: The Role of Anchoring and Household Formation in South Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(1), pages 119-140, March.
    14. Francesco Bloise & Paolo Brunori & Patrizio Piraino, 2020. "Estimating intergenerational income mobility on sub-optimal data: a machine learning approach," Working Papers 526, ECINEQ, Society for the Study of Economic Inequality.
    15. UNDP Regional Bureau for Africa & Shantanu Mukherjee & Angela Lusigi & Eunice Kamwendo & Astra Bonini, "undated". "Inequality, Gender and Human Development in Africa," UNDP Africa Policy Notes 2017-12, United Nations Development Programme, Regional Bureau for Africa.
    16. Florencia Torche, 2019. "Educational mobility in developing countries," WIDER Working Paper Series wp-2019-88, World Institute for Development Economic Research (UNU-WIDER).
    17. repec:rac:ecchap:2017-12 is not listed on IDEAS
    18. Leone, Tharcisio, 2017. "The gender gap in intergenerational mobility: Evidence of educational persistence in Brazil," Discussion Papers 2017/27, Free University Berlin, School of Business & Economics.
    19. Patricia Funjika & Yoseph Getachew, 2019. "Colonial origin, ethnicity, and intergeneration mobility in Africa," WIDER Working Paper Series wp-2019-64, World Institute for Development Economic Research (UNU-WIDER).
    20. Mukherjee, Shantanu & Lusigi, Angela & Kamwendo, Eunice & Bonini, Astra, 2017. "Income Inequality Trends in sub-Saharan Africa: Divergence, determinants and consequences: Inequality, Gender and Human Development in Africa," UNDP Africa Reports 267647, United Nations Development Programme (UNDP).
    21. Dang, Thang, 2015. "Intergenerational mobility of earnings and income among sons and daughters in Vietnam," MPRA Paper 75357, University Library of Munich, Germany.
    22. Dieter Fintel & Dorrit Posel, 2016. "Errors in Recalling Childhood Socio-economic Status: The Role of Anchoring and Household Formation in South Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(1), pages 119-140, March.
    23. Ivan Turok & Joshua Budlender & Justin Visagie, 2018. "Urban “slums” and social mobility," Development Policy Review, Overseas Development Institute, vol. 36(6), pages 703-725, October.
    24. Reddy, A. Bheemeshwar, 2015. "Changes in Intergenerational Occupational Mobility in India: Evidence from National Sample Surveys, 1983–2012," World Development, Elsevier, vol. 76(C), pages 329-343.
    25. Ana Suárez Álvarez & Ana Jesús López Menéndez, 2018. "Assessing Changes Over Time in Inequality of Opportunity: The Case of Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(3), pages 989-1014, October.

    More about this item

    Keywords

    Intergenerational earnings mobility; inequality of opportunity;

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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