Nonlinearities in intergenerational earnings mobility: consequences for cross-country comparisons
Bratsberg, Bernt, Roed, Knut, Raaum, Oddbjorn, Naylor, Robin Andrew, 1959-, Jantti, Markus, Eriksson, Tor and Osterbacka, Eva. (2007) Nonlinearities in intergenerational earnings mobility: consequences for cross-country comparisons. Economic Journal, Vol.117 (No.519). C72-C92. ISSN 0013-0133Full text not available from this repository.
Official URL: http://dx.doi.org/10.1111/j.1468-0297.2007.02036.x
We show that the patterns of intergenerational earnings mobility in Denmark, Finland and Norway, unlike those for the US and the UK, are highly nonlinear. The Nordic relationship between log earnings of sons and fathers is flat in the lower segments of the fathers' earnings distribution - sons growing up in the poorest households have the same adult earnings prospects as sons in moderately poor households - and is increasingly positive in middle and upper segments. This convex pattern contrasts sharply with our findings for the US and the UK, where the relationship is much closer to being linear. As a result, cross-country comparisons of intergenerational earnings elasticities may be misleading with respect to transmission mechanisms in the central parts of the earnings distribution and uninformative in the tails of the distribution.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HC Economic History and Conditions|
|Divisions:||Faculty of Social Sciences > Economics|
|Journal or Publication Title:||Economic Journal|
|Number of Pages:||21|
|Access rights to Published version:||Restricted or Subscription Access|
|Funder:||Nordic Council of Ministers, Academy of Finland, Norwegian Ministry of Labour and Social Inclusion|
|Grant number:||149813- 599; 206680; Frisch project no. 1391|
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