Two-Sample Nonparametric Estimation of Intergenerational Income Mobility in the United States and Sweden

Two-Sample Nonparametric Estimation of Intergenerational Income Mobility in the United States and Sweden
Author: Irina Murtazashvili
Publisher:
Total Pages: 0
Release: 2016
Genre:
ISBN:

English Abstract We estimate intergenerational income mobility in the US and Sweden, using a new nonparametric approach. The approach addresses several empirical issues raised in the literature and applies when other estimators are infeasible. We argue that previous estimates of income mobility conceal the heterogeneous nature of the transmission mechanism by keeping mobility constant across families. The striking differences we find between mobility patterns across family backgrounds, captured by father's education, lead us to question the conventional result that intergenerational transmission of earnings is weaker in Sweden than in the United States, for important parts of the population. French Abstract Estimation non-paramétrique à deux échantillons de la mobilité intergénérationnelle du revenu aux États-Unis et en Suède. On estime la mobilité intergénérationnelle du revenu aux États-Unis et en Suède en utilisant une nouvelle approche non-paramétrique. Cette approche résout plusieurs problèmes empiriques soulevés dans la littérature spécialisée et s'applique quand d'autres estimateurs sont impossibles à utiliser. On suggère que certaines estimations antérieures de la mobilité des revenus cachent la nature hétérogène du mécanisme de transmission en maintenant la mobilité constante entre les familles. Les différences frappantes qu'on découvre dans les patterns de mobilité entre familles de contextes différents (saisis par le niveau d'éducation du père) amènent à remettre en question le résultat conventionnel qui voudrait que la transmission intergénérationnelle des revenus est plus faible en Suède qu'aux États-Unis pour une portion importante de la population.

Generational Income Mobility in North America and Europe

Generational Income Mobility in North America and Europe
Author: Miles Corak
Publisher: Cambridge University Press
Total Pages: 348
Release: 2004-11-25
Genre: Business & Economics
ISBN: 9781139455763

Labour markets in North America and Europe have changed tremendously in the face of increased globalisation and technical progress, raising important challenges for policy makers concerned with equality of opportunity. This book examines the influence of both changes in income inequality and of social policies on the degree to which economic advantage is passed on between parents and children in the rich countries. Standard theoretical models of generational dynamics are extended to examine generational income and earnings mobility over time and across space. Over twenty contributors from North America and Europe offer comparable estimates of the degree of mobility, changes in mobility, and the impact of government policy. In so doing, they strengthen the analytical tool kit used in the study of generational mobility, and offer insights for research and directions in dealing with equality of opportunity and child poverty.

Inequality of Opportunity

Inequality of Opportunity
Author: Juan Gabriel Rodríguez
Publisher: Emerald Group Publishing
Total Pages: 259
Release: 2011-10-12
Genre: Business & Economics
ISBN: 1780520344

Eight papers, both theoretical and applied, on the concept of equality of opportunity which says that a society should guarantee its members equal access to advantage regardless of their circumstances, while holding them responsible for turning that access into actual advantage by the application of effort.

A Nonparametric Analysis of Black-White Differences in Intergenerational Income Mobility in the United States

A Nonparametric Analysis of Black-White Differences in Intergenerational Income Mobility in the United States
Author: Debopam Bhattacharya
Publisher:
Total Pages: 0
Release: 2011
Genre:
ISBN:

Lower intergenerational income mobility for blacks is a likely cause behind the persistent inter-racial gap in economic status in the US. However, few studies have analyzed black-white differences in intergenerational income mobility and the factors that determine these differences. This is largely due to the absence of appropriate methodological tools. We develop nonparametric methods to estimate the effects of covariates on two measures of mobility. We first consider the traditional transition probability of movement across income quantiles. We then introduce a new measure of upward mobility which is the probability that an adult child's relative position exceeds that of the parents. Conducting statistical inference on these mobility measures and the effects of covariates on them requires nontrivial modifications of standard nonparametric regression theory since the dependent variables are nonsmooth functions of marginal quantiles or relative ranks. Using NLSY data, we document that blacks experience much less upward mobility across generations than whites. Applying our new methodological tools, we find that most of this gap can be accounted for by differences in cognitive skills during adolescence.

The Intergenerational Earnings and Income Mobility of Canadian Men

The Intergenerational Earnings and Income Mobility of Canadian Men
Author: Miles Corak
Publisher:
Total Pages: 0
Release: 2001
Genre:
ISBN:

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 mobility 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 very top of the income distribution.

A Lifecycle Estimator of Intergenerational Income Mobility

A Lifecycle Estimator of Intergenerational Income Mobility
Author: Ursula Mello
Publisher:
Total Pages: 0
Release: 2022
Genre:
ISBN:

The estimation of intergenerational mobility ideally requires full income histories to determine lifetime incomes. However, as applications are typically based on shorter snapshots, estimates are subject to lifecycle bias. Using long income series from Sweden and the US, we illustrate that standard correction methods struggle to account for one important property of income processes: children from more affluent families tend to experience faster income growth, even conditional on their own characteristics. We propose a lifecycle estimator that captures this pattern and that performs well across different settings. We then apply this estimator to study mobility trends in Sweden and in the US, including for more recent cohorts that could not be considered in prior work. Despite rising income inequality, intergenerational income mobility remained largely stable over cohorts born 1950-1989 in both countries.