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Overview of intergenerational earnings mobility in Germany

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  • Céline Lecavelier des Etangs-Levallois

    (Université de Cergy-Pontoise, THEMA)

Abstract

This paper analyses intergenerational earnings mobility in Germany, reviewing the recent literature, further investigating the impact of sampling and methodological strategies and presenting alternative results. Using data from the German SocioEconomic Panel (SOEP), the aim is to evaluate the role of father's earnings level on son's one, taking a close look at attenuation and life-cycle biases. We first estimate the association of current and lifetime earnings over the life-cycle. We then estimate the intergenerational elasticity at 0.3. We average fathers' earnings over different periods of time to evaluate and reduce attenuation bias, and we handle life-cycle bias by controlling son's age span or adding the interaction between son's age and father's earnings in the regression equation.

Suggested Citation

  • Céline Lecavelier des Etangs-Levallois, 2017. "Overview of intergenerational earnings mobility in Germany," THEMA Working Papers 2017-11, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    • Handle: RePEc:ema:worpap:2017-11
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    References listed on IDEAS

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    More about this item

    Keywords

    intergenerational mobility; life-cycle bias; earnings; Germany; SOEP;
    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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