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Effects of Education on the Intergenerational Transmission of Labor Income in Mexico

Author

Listed:
  • Jorge N. Valero-Gil

    (Facultad de Economia, Universidad Autonoma de Nuevo Leon)

  • Jose A. Tijerina-Guajardo

    (Universidad Autonoma de Nuevo Leon)

Abstract

This paper studies the relationship between the labor market earnings of parents and their children, with a particular emphasis on education. We incorporate heterogeneity of levels of income in two ways: first, by examining the transmission mechanism of family income by grouping households according to income levels. Second, we use quantile regressions to evaluate how the earnings distribution changes over time. For this purpose, we use hourly earnings of the household head and decompose it into the estimated hourly earnings and a residual.

Suggested Citation

  • Jorge N. Valero-Gil & Jose A. Tijerina-Guajardo, 2002. "Effects of Education on the Intergenerational Transmission of Labor Income in Mexico," Eastern Economic Journal, Eastern Economic Association, vol. 28(3), pages 381-392, Summer.
    • Handle: RePEc:eej:eeconj:v:28:y:2002:i:3:p:381-392
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    References listed on IDEAS

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    1. Miles Corak & Andrew Heisz, 1999. "The Intergenerational Earnings and Income Mobility of Canadian Men: Evidence from Longitudinal Income Tax Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 504-533.
    2. Mr. Vito Tanzi, 1998. "Fundamental Determinants of Inequality and the Role of Government," IMF Working Papers 1998/178, International Monetary Fund.
    3. Gary S. Becker & Nigel Tomes, 1994. "Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition, pages 257-298, National Bureau of Economic Research, Inc.
    4. Behrman, Jere & Tarbman, Paul, 1985. "Intergenerational Earnings Mobility in the United States: Some Estimates and a Test of Becker's Intergenerational Endowments Model," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 144-151, February.
    5. James Heckman, 2011. "Policies to foster human capital," Voprosy obrazovaniya / Educational Studies Moscow, National Research University Higher School of Economics, issue 3, pages 73-137.
    6. Welch, Finis, 1990. "The Employment of Black Men," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages 26-74, January.
    7. Han, Song & Mulligan, Casey B, 2001. "Human Capital, Heterogeneity and Estimated Degrees of Intergenerational Mobility," Economic Journal, Royal Economic Society, vol. 111(470), pages 207-243, April.
    8. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    9. Eric R. Eide & Mark H. Showalter, 1999. "Factors Affecting the Transmission of Earnings across Generations: A Quantile Regression Approach," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 253-267.
    10. Becker, Gary S, 1989. "On the Economics of the Family: Reply to a Skeptic," American Economic Review, American Economic Association, vol. 79(3), pages 514-518, June.
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    Citations

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    Cited by:

    1. Binzel, Christine & Carvalho, Jean-Paul, 2013. "Education, Social Mobility and Religious Movements: A Theory of the Islamic Revival in Egypt," IZA Discussion Papers 7259, Institute of Labor Economics (IZA).
    2. Binzel, Christine, 2011. "Decline in Social Mobility: Unfulfilled Aspirations among Egypt's Educated Youth," IZA Discussion Papers 6139, Institute of Labor Economics (IZA).
    3. Nguyen, Anh & Getinet, Haile, 2003. "Intergenerational mobility in educational and occupational status: evidence from the U.S," MPRA Paper 1383, University Library of Munich, Germany.
    4. Haile, Getinet Astatike, 2016. "Intergenerational Mobility in Income and Economic Status in Ethiopia," IZA Discussion Papers 10047, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Education; Labor Income;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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