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Intergenerational mobility along the income distribution: estimates using administrative data for a developing country

Author

Listed:
  • Martín Leites

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Xavier Ramos

    (Universitat Autònoma de Barcelona)

  • Cecilia Rodríguez

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

  • Vilá Joan

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía)

Abstract

In this paper, we provide novel estimates of intergenerational mobility for Uruguay that for the first time in a developing country, are based on administrative tax-social security records. We estimate the Intergenerational Ranking Association (IRA) and explore non-linearities. We explore alternatives to address the role of informal labour market, which is one of the main challenges to obtain precise measure of intergenerational mobility for a developing country. We have three main results: first, the level of persistence is higher when we consider individuals with less attachment to the formal labour market. Second, we find evidence of non-linearities in the degree of intergenerational persistence, being substantially higher for high-income households. Finally, there is heterogeneity by gender on the degree of intergenerational mobility, with mother-daughter transmission being the most persistent.

Suggested Citation

  • Martín Leites & Xavier Ramos & Cecilia Rodríguez & Vilá Joan, 2022. "Intergenerational mobility along the income distribution: estimates using administrative data for a developing country," Documentos de Trabajo (working papers) 22-05, Instituto de Economía - IECON.
    • Handle: RePEc:ulr:wpaper:dt-05-22
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    File URL: https://hdl.handle.net/20.500.12008/31899
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    References listed on IDEAS

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    2. Javier Cortes Orihuela & Juan D. Díaz & Pablo Gutiérrez Cubillos & Pablo A. Troncoso, 2024. "Everything’s not lost: revisiting TSTSLS estimates of intergenerational mobility in developing countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(1), pages 66-94, February.

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    More about this item

    Keywords

    intergenerational income mobility; inequality; top incomes; non-linearities; formal labour market;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy

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