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Careers and Intergenerational Income Mobility

Author

Listed:
  • Haeck, Catherine

    (University of Montreal)

  • Laliberté, Jean-William

    (University of Calgary)

Abstract

This paper uses Census microdata linked with tax records to quantify the contribution of career choices - occupations and fields of study - to intergenerational income mobility. We document substantial segregation into occupations by parental income. Yet, the occupations children pursue explain only a third of the intergenerational persistence of income. We further describe patterns of intergenerational occupational following and show they vary substantially across occupations, with low-paying occupations showing more persistence across generations on average. However, clustering into occupations based on parental income is mostly independent of parental occupations. Our results demonstrate that occupational persistence only weakly contributes to income immobility.

Suggested Citation

  • Haeck, Catherine & Laliberté, Jean-William, 2023. "Careers and Intergenerational Income Mobility," IZA Discussion Papers 16273, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16273
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    References listed on IDEAS

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    More about this item

    Keywords

    intergenerational mobility; occupational choice; income inequality;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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