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Intergenerational Income Transmission: New Evidence from Canada

Author

Listed:
  • Chen, Wen-Hao
  • Piraino, Patrizio
  • Ostrovsky, Yuri

Abstract

Comparative studies of intergenerational earnings and income mobility largely rank Canada as one of the most mobile countries among advanced economies, such as Denmark, Finland and Norway. The assertion that Canada is a highly mobile society is drawn from intergenerational income elasticity estimates reported in Corak and Heisz (1999). Corak and Heisz used data from the earlier version of the Intergenerational Income Database (IID), which tracked income of Canadian youth only into their early thirties. Recent theoretical literature, however, suggests that the relationship between childrens? and parents? lifetime income may not be accurately estimated when children?s income are not observed from their mid-careers? known as lifecycle bias. The present study addresses this concern by re-examining the extent of intergenerational earnings and income mobility in Canada using the updated version of the IID, which tracks children well into their mid-forties, when mid-career income are observed.

Suggested Citation

  • Chen, Wen-Hao & Piraino, Patrizio & Ostrovsky, Yuri, 2016. "Intergenerational Income Transmission: New Evidence from Canada," Analytical Studies Branch Research Paper Series 2016379e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:2016379e
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    Citations

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    Cited by:

    1. Faraz Vahid Shahidi & Carles Muntaner & Ketan Shankardass & Carlos Quiñonez & Arjumand Siddiqi, 2018. "Widening health inequalities between the employed and the unemployed: A decomposition of trends in Canada (2000-2014)," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-22, November.
    2. Marie Connolly & Miles Corak & Catherine Haeck, 2019. "Intergenerational Mobility Between and Within Canada and the United States," Journal of Labor Economics, University of Chicago Press, vol. 37(S2), pages 595-641.
    3. Kanbur, Ravi, 2019. "In Praise of Snapshots," IZA Discussion Papers 12830, Institute of Labor Economics (IZA).
    4. Toru Kitagawa & Martin Nybom & Jan Stuhler, 2018. "Measurement error and rank correlations," CeMMAP working papers CWP28/18, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    5. Miles Corak, 2016. "`Inequality is the root of social evil,' or Maybe Not? Two Stories about Inequality and Public Policy," Canadian Public Policy, University of Toronto Press, vol. 42(4), pages 367-414, December.
    6. Liu, Qijun & Song, Lijie, 2022. "Do intergovernmental transfers boost intergenerational income mobility? Evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 293-309.
    7. Miles Corak, 2017. "Divided Landscapes of Economic Opportunity: The Canadian Geography of Intergenerational Income Mobility," Working Papers 2017-043, Human Capital and Economic Opportunity Working Group.

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