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Long-term Trends in Intergenerational Income Mobility in Japan: From High Increasing to Lost Decade

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  • Zhi-xiao Jia

Abstract

This paper focuses on how components of intergenerational income mobility (IGM) in Japan vary with cohorts. Intergenerational income elasticity (IGE) between fathers and sons is estimated using Two Sample Two Stage Least Square (TS2SLS) approach and is decomposed into several intergenerational transmission pathways. Contribution of each pathway to IGE is jointly determined by the strength of transmission and income premiums. How IGE due to these transmission pathways vary with cohorts is analyzed by estimating long-term trends in intergenerational transmissions and income structure. This paper finds IGE in Japan for sons born from 1935 to 1976 lies around 0.35 to 0.40. What's

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  • Zhi-xiao Jia, 2020. "Long-term Trends in Intergenerational Income Mobility in Japan: From High Increasing to Lost Decade," TERG Discussion Papers 423, Graduate School of Economics and Management, Tohoku University.
    • Handle: RePEc:toh:tergaa:423
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    File URL: http://hdl.handle.net/10097/00128144
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