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The Intergenerational Earnings and Income Mobility of Canadian

Author

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  • Miles Corak

    (Statistics Canada)

  • Andrew Heisz

    (Statistics Canada)

Abstract

Our objective is to obtain an accurate estimate of the degree of intergenerational income mobility in Canada. We use income tax information on about 400,000 father-son pairs, and find intergenerational earnings elasticities to be about 0.2. Earnings mobility tends to be slightly greater than income mobility, but non- parametric techniques uncover significant non-linearities in both of these relationships. Intergenerational earnings mobilty is greater at the lower end of the income distribution than at the upper end, and displays an inverted V-shape elsewhere. Intergenerational income mobility follows roughly the same pattern, but is much lower at the top of the income distribution.

Suggested Citation

  • Miles Corak & Andrew Heisz, 1998. "The Intergenerational Earnings and Income Mobility of Canadian," Labor and Demography 9808001, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpla:9808001
    Note: Type of Document - pdf; prepared on IBM PC - PC; to print on HP; pages: 49 ; figures: included. Paper presented to the 1998 meetings of the SOLE
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    Cited by:

    1. Michele Raitano & Francesco Vona, 2015. "Direct and Indirect Influences of Parental Background on Children's Earnings: a Comparison across Countries and Genders," Manchester School, University of Manchester, vol. 83(4), pages 423-450, July.
    2. Mason, Patrick, 2007. "Intergenerational mobility and interraical inequality:the return to family values," MPRA Paper 11327, University Library of Munich, Germany.
    3. Lena Lindahl, 2008. "Do birth order and family size matter for intergenerational income mobility? Evidence from Sweden," Applied Economics, Taylor & Francis Journals, vol. 40(17), pages 2239-2257.
    4. Nilsson, William, 2005. "Opportunities, Preferences and Incomes," Umeå Economic Studies 649, Umeå University, Department of Economics.
    5. Nilsson, William, 2005. "Equality of Opportunity, Heterogeneity and Poverty," Umeå Economic Studies 652, Umeå University, Department of Economics.
    6. Bratberg, Espen & Nilsen, Øivind Anti & Vaage, Kjell, 2008. "Job losses and child outcomes," Labour Economics, Elsevier, vol. 15(4), pages 591-603, August.
    7. Bratberg, Espen & Nilsen, Øivind Anti & Vaage, Kjell, 2002. "Assessing Changes in Intergenerational Earnings Mobility," Working Papers in Economics 26/02, University of Bergen, Department of Economics.
    8. Epstein, Gil S. & Lecker, Tikva, 2001. "Multi-Generation Model of Immigrant Earnings: Theory and Application," IZA Discussion Papers 275, Institute of Labor Economics (IZA).
    9. James McIntosh, 2010. "Educational mobility in Canada: results from the 2001 general social survey," Empirical Economics, Springer, vol. 38(2), pages 457-470, April.
    10. Donal O’Neill & Olive Sweetman & Dirk Van de gaer, 2007. "The effects of measurement error and omitted variables when using transition matrices to measure intergenerational mobility," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(2), pages 159-178, August.
    11. Nathalie Chusseau & Joël Hellier & B. Ben-Halima, 2013. "Education, Intergenerational Mobility and Inequality," Palgrave Macmillan Books, in: Joël Hellier & Nathalie Chusseau (ed.), Growing Income Inequalities, chapter 8, pages 227-273, Palgrave Macmillan.
    12. Diego Restuccia & Carlos Urrutia, 2004. "Intergenerational Persistence of Earnings: The Role of Early and College Education," American Economic Review, American Economic Association, vol. 94(5), pages 1354-1378, December.
    13. Donal O'Neill & Olive Sweetman & Dirk van de gaer, 1999. "Equality of Opportunity and Kernel Density Estimation: An Application to Intergenerational Mobility," Economics Department Working Paper Series n950999, Department of Economics, National University of Ireland - Maynooth.
    14. McIntosh, James & Munk, Martin D., 2009. "Social class, family background, and intergenerational mobility," European Economic Review, Elsevier, vol. 53(1), pages 107-117, January.
    15. Bratberg, Espen & Nilsen, Øivind Anti & Vaage, Kjell, 2005. "Intergenerational Mobility: Trends Across the Earnings Distribution," Working Papers in Economics 04/05, University of Bergen, Department of Economics.
    16. Chen, Wen-Hao & Aydemir, Abdurrahman & Corak, Miles, 2005. "Mobilite intergenerationnelle des gains chez les enfants des immigrants au Canada," Direction des études analytiques : documents de recherche 2005267f, Statistics Canada, Direction des études analytiques.
    17. Nguyen, Anh & Getinet, Haile, 2003. "Intergenerational mobility in educational and occupational status: evidence from the U.S," MPRA Paper 1383, University Library of Munich, Germany.
    18. Moshe Justman & Anna Krush, 2013. "Less Equal and Less Mobile: Evidence of a Decline in Intergenerational Income Mobility in the United States," Melbourne Institute Working Paper Series wp2013n43, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    19. Samuel Bowles & Herbert Gintis, 2002. "The Inheritance of Inequality," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 3-30, Summer.
    20. Blanden, Joanne, 2005. "Love and Money: Intergenerational Mobility and Marital Matching on Parental Income," Analytical Studies Branch Research Paper Series 2005272e, Statistics Canada, Analytical Studies Branch.
    21. D. O’Neill & O. Sweetman & D. Van De Gaer, 2002. "Consequences of Specification Error for Distributional Analysis With an Application to Intergenerational Mobility," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 02/156, Ghent University, Faculty of Economics and Business Administration.

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    More about this item

    Keywords

    Intergenerational Income Mobility; Income Distribution; Nonparametric regression;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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