Journal ArticleDOI
Fortunate Sons: New Estimates of Intergenerational Mobility in the United States Using Social Security Earnings Data
TLDR
This article found that intergenerational mobility is significantly lower for families with little or no wealth, offering empirical support for theoretical models that predict differences due to borrowing constraints, suggesting that the United States is substantially less mobile than previous research indicated.Abstract:
Previous studies, relying on short-term averages of fathers' earnings, have estimated the intergenerational elasticity (IGE) in earnings to be approximately 0.4. Due to persistent transitory fluctuations, these estimates have been biased down by approximately 30% or more. Using administrative data containing the earnings histories of parents and children, the IGE is estimated to be around 0.6. This suggests that the United States is substantially less mobile than previous research indicated. Estimates of intergenerational mobility are significantly lower for families with little or no wealth, offering empirical support for theoretical models that predict differences due to borrowing constraints.read more
Citations
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Journal ArticleDOI
Do Education and Sex Matter for Intergenerational Earnings Mobility? Some Evidence from Australia
TL;DR: In this paper, the authors analyzed the intergenerational earnings mobility in Australia for all combinations of mothers, fathers, sons and daughters, and found that mobility is highest between parents and children of the opposite sex.
Journal ArticleDOI
Loss aversion, education, and intergenerational mobility
TL;DR: In this paper, a behavioral explanation for the intergenerational income elasticity was proposed, in which heterogeneous agents in sequential generations choose their education levels in the face of loss-averse preferences and weak borrowing constraints.
Journal ArticleDOI
Intergenerational Educational Mobility in Hong Kong: Are Immigrants More Mobile than Natives?
Kit-Chun Lam,Pak Wai Liu +1 more
TL;DR: This paper found that Hong Kong born children of immigrant parents, the second generation immigrants, are also more mobile than the children of Hong Kong-born parents, even though children from better educated families continue to have higher probability of university attendance than children from less educated families.
Journal ArticleDOI
Top Incomes, Rising Inequality, and Welfare
TL;DR: In this paper, the authors introduce permanently shifting income shares into a growth model with workers and capital owners, where short-run declines in workers' consumption are only partially offset by longer-term gains from higher transfers and more capital per worker.
Journal ArticleDOI
Do grandparents matter? Multigenerational mobility in the united states, 1940–2015
TL;DR: This article assess the biases induced by measurement error in a study of correlations in educational attainment across two and three generations in the United States using linked data spanning 1940-2015, and find that the bias is related to the degree of education attainment.
References
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Journal ArticleDOI
An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility
Gary S. Becker,Nigel Tomes +1 more
TL;DR: The theory of inequality and intergenerational mobility presented in this paper assumes that each family maximizes a utility function spanning several generations, which depends on the consumption of parents and on the quantity and quality of their children.
Posted Content
Intergenerational Income Mobility in the United States
TL;DR: For example, this article showed that the intergenerational correlation in long-run income is at least 0.4, indicating dramatically less mobility than suggested by earlier research, indicating less mobility.
Posted ContentDOI
Human Capital Policy
TL;DR: This paper showed the importance of cognitive and non-cognitive skills that are formed early in the life cycle in accounting for racial, ethnic and family background gaps in schooling and other dimensions of socioeconomic success.
Journal ArticleDOI
Least absolute deviations estimation for the censored regression model
TL;DR: In this paper, an alternative to maximum likelihood estimation of the parameters of the censored regression (or censored 'Tobit' model) is proposed, which is a generalization of least absolute deviations estimation for the standard linear model, and is also robust to heteroscedasticity.
Journal ArticleDOI
The Dynamics of Educational Attainment for Black, Hispanic, and White Males
TL;DR: The authors found that the long-run factors associated with parental background and family environment, and not credit constraints facing prospective students in the college-going years, account for most of the racial and ethnic disparities in college attendance.