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And Yet It Moves: Intergenerational Mobility in Italy

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  • Paolo Acciari
  • Alberto Polo
  • Giovanni L. Violante

Abstract

We estimate intergenerational income mobility in Italy using administrative data from tax returns. Our estimates of mobility are higher than prior work using survey data and indirect methods. The rank-rank slope of parent-child income is 0.22, compared to 0.18 in Denmark and 0.34 in the United States. The probability that a child reaches the top quintile of the national income distribution starting from a family in the bottom quintile is 0.11. We uncover substantial geographical variation: upward mobility is much stronger in northern Italy, where provinces have higher measured school quality, more stable families, and more favorable labor market conditions.

Suggested Citation

  • Paolo Acciari & Alberto Polo & Giovanni L. Violante, 2022. "And Yet It Moves: Intergenerational Mobility in Italy," American Economic Journal: Applied Economics, American Economic Association, vol. 14(3), pages 118-163, July.
    • Handle: RePEc:aea:aejapp:v:14:y:2022:i:3:p:118-63
    DOI: 10.1257/app.20210151
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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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