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Intergenerational earnings mobility in Japan among sons and daughters : levels and trends

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  • Arnaud Lefranc

    (THEMA - Théorie économique, modélisation et applications - UCP - Université de Cergy Pontoise - Université Paris-Seine - CNRS - Centre National de la Recherche Scientifique)

  • Fumiaki Ojima
  • Takashi Yoshida

    (Kyoto University)

Abstract

This paper estimates the extent of intergenerational income mobility in Japan among sons and daughters born between 1935 and 1975. Our estimates rely on a two-sample instrumental variables approach using representative data from the Japanese Social Strat-ification and Mobility (SSM) surveys, collected between 1965 and 2005. Father's income is predicted on the basis of a rich set of variables and we discuss changes in the Japanese earnings structure for cohorts born between the early 1900s and the 1960s. Our main results indicate that the intergenerational income elasticity (IGE) for both sons and daughters, in Japan lies around .35, which is an intermediate value, by international standards. We discuss the sensitivity of the IGE to using either personal or family income as the income variable for both fathers and children. We also examine changes across cohorts in the IGE. Results indicate that intergenerational mobility has been roughly stable over the last decades. JEL Codes: D1, D3, J3

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  • Arnaud Lefranc & Fumiaki Ojima & Takashi Yoshida, 2014. "Intergenerational earnings mobility in Japan among sons and daughters : levels and trends ," Post-Print hal-01648188, HAL.
    • Handle: RePEc:hal:journl:hal-01648188
    DOI: 10.1007/s00148-012-0464-2
    Note: View the original document on HAL open archive server: https://hal.science/hal-01648188
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    2. Yu-Wei Luke Chu & Ming-Jen Lin, 2020. "Intergenerational earnings mobility in Taiwan: 1990–2010," Empirical Economics, Springer, vol. 59(1), pages 11-45, July.
    3. Kohei Kubota, 2017. "Intergenerational Wealth Elasticity in Japan," The Japanese Economic Review, Springer, vol. 68(4), pages 470-496, December.
    4. Zhi‐xiao Jia, 2023. "Birth order and intergenerational income mobility in Japan: Is the first‐born child different?," Asian Economic Journal, East Asian Economic Association, vol. 37(2), pages 210-231, June.
    5. Chu, Luke Yu-Wei & Lin, Ming-Jen, 2016. "Economic development and intergenerational earnings mobility: Evidence from Taiwan," Working Paper Series 19495, Victoria University of Wellington, School of Economics and Finance.
    6. Soobin Kim, 2017. "Intergenerational mobility in Korea," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-18, December.
    7. Carmichael, Fiona & Darko, Christian K. & Ercolani, Marco G. & Ozgen, Ceren & Siebert, W. Stanley, 2020. "Evidence on intergenerational income transmission using complete Dutch population data," Economics Letters, Elsevier, vol. 189(C).
    8. Dang, Thang, 2015. "Intergenerational mobility of earnings and income among sons and daughters in Vietnam," MPRA Paper 75357, University Library of Munich, Germany.
    9. Chu, Luke Yu-Wei & Lin, Ming-Jen, 2016. "Economic development and intergenerational earnings mobility: Evidence from Taiwan," Working Paper Series 5272, Victoria University of Wellington, School of Economics and Finance.
    10. David Fairbrother & Renuka Mahadevan, 2016. "Do Education and Sex Matter for Intergenerational Earnings Mobility? Some Evidence from Australia," Australian Economic Papers, Wiley Blackwell, vol. 55(3), pages 212-226, September.
    11. Nizam MelikÅŸah Demirtas & Orhan Torul, 2021. "Intergenerational Income Mobility in Turkey Abstract:," Working Papers 2021/05, Bogazici University, Department of Economics.
    12. Zhi-xiao Jia, 2022. "Regular employment and intergenerational income mobility in Japan," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 12(2), pages 187-212, June.
    13. Kohei Kubota, 2017. "Intergenerational Wealth Elasticity in Japan," The Japanese Economic Review, Japanese Economic Association, vol. 68(4), pages 470-496, December.
    14. Ono, Taiki, 2024. "Bequests and wealth inequality in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 72(C).
    15. Lijie Song, 2021. "Does Public Investment Promote Intergenerational Mobility? Who Really Benefits?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(1), pages 59-80, November.

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    More about this item

    Keywords

    intergenerational mobility; income inequality; Japan; assortative mating; education;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D3 - Microeconomics - - Distribution
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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