IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/126781.html
   My bibliography  Save this paper

Trade and intergenerational income mobility: theory and evidence from the US

Author

Listed:
  • Colantone, Italo
  • Ottaviano, Gianmarco I. P.
  • Takeda, Kohei

Abstract

This paper studies the impact of globalization on intergenerational income mobility. Exploiting U.S. data, we find that stronger trade exposure at the commuting zone level lowers the intergenerational income mobility of residents. In particular, higher exposure to Chinese import competition lowers the income mobility of the cohort of U.S. workers born in 1980-1982. We present a general equilibrium theory in which path dependence in sector choice of individuals over generations and mobility frictions determine the dynamics of industrial compositions across locations in a country. The theory predicts that rising import competition reduces intergenerational income mobility, consistent with the empirical findings.

Suggested Citation

  • Colantone, Italo & Ottaviano, Gianmarco I. P. & Takeda, Kohei, 2024. "Trade and intergenerational income mobility: theory and evidence from the US," LSE Research Online Documents on Economics 126781, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:126781
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/126781/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    import competition; distributional consequences; intergenerational income mobility;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:126781. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.