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Assessing Changes in Intergenerational Earnings Mobility

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  • Bratberg, Espen

    (University of Bergen)

  • Nilsen, Øivind Anti

    (Norwegian School of Economics)

  • Vaage, Kjell

    (University of Bergen)

Abstract

Previous research on changes in intergenerational mobility suggests that mobility is decreasing over time. One explanation for this pattern is increased cross-sectional income inequality. In contrast to most other OECD countries, income inequality in Norway has been remarkably stable through large parts of the 1980s and the 1990s, not least due to a compression of the earnings distribution during the same period. Using longitudinal data for Norwegian children born in 1950, 1955, 1960, and 1965, we find a relatively high degree of earnings mobility. Furthermore, there is no tendency to increasing inequality along this dimension. This finding supports the hypothesis that intergenerational mobility is positively correlated with a compressed income distribution. Quartile father-child earnings transition matrices, together with non-parametric regressions, indicate quite high mobility in the middle of the distribution and somewhat more persistence at the top and bottom. This approach also reveals increased mobility over time for sons, but a less clear picture for daughters.

Suggested Citation

  • Bratberg, Espen & Nilsen, Øivind Anti & Vaage, Kjell, 2003. "Assessing Changes in Intergenerational Earnings Mobility," IZA Discussion Papers 797, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp797
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    Cited by:

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    2. Borodkin, Fridrich & Bragin, Vladimir & Shpack, Maria, 2006. "Stability of Incomes Distribution in Modern Russia (1994–2004)," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 3(3), pages 17-67.
    3. Raaum, Oddbjørn & Salvanes, Kjell G. & Sørensen, Erik Ø., 2003. "The Impact of a Primary School Reform on Educational Stratification: A Norwegian Study of Neighbour and School Mate Correlations," IZA Discussion Papers 953, Institute of Labor Economics (IZA).
    4. María Gil Izquierdo & Laura de Pablos Escobar & María Martínez Torres, 2010. "Los determinantes socioeconómicos de la demanda de Educación Superior en España y la movilidad educativa intergeneracional," Hacienda Pública Española / Review of Public Economics, IEF, vol. 193(2), pages 75-108, June.

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    More about this item

    Keywords

    intergenerational mobility; intertemporal change;

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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