Evidence on intergenerational income transmission using complete Dutch population data

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.We estimate the intergenerational elasticity (IGE) of income for the Netherlands using complete population data for around 177,000 28-year olds. We find that IGEs are much lower when actual individual income data are used rather than proxies or aggregates for income. Though low, daughters' IGEs are higher than sons' indicating lower income mobility for women. JEL Classification:J62, J61, D31

The Roots of Inequality: Estimating Inequality of Opportunity from Regression Trees and Forests

“…Inequality of opportunity rankings of existing studies are moderately correlated with IGE rankings. However, various findings contradict comparative evidence on the IGE (Carmichael et al, 2020;Bratberg et al, 2017). For example, Palomino et al ( 2019) and Suárez Álvarez and López Menéndez (2021) find inequality of opportunity in Germany to be at par with the Nordic countries.…”

“…Furthermore, we do not include Brzezinski (2020) since he derives estimates based on the methods proposed in this paper.18 We focus on IGE estimates based on actual data linkages across generations and exclude IGE estimates based on two-sample instrumental variable estimators to mitigate distortions through measurement error. Estimates are extracted from Stuhler (2018) andCarmichael et al (2020). Jointly both studies contain the following subset of our country sample: Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Sweden, Spain, and the United Kingdom.…”

The roots of inequality: estimating inequality of opportunity from regression trees and forests*

“…Inequality of opportunity rankings of existing studies are only moderately correlated with IGE rankings. In fact, various findings contradict comparative evidence on the IGE (Carmichael et al, 2020;Bratberg et al, 2017). For example, Palomino et al (2019) and Suárez Álvarez and López Menéndez (2021) find inequality of opportunity in Germany to be on a par with the Nordic countries.…”

“…All ranks are calculated from the mean log deviation of the counterfactual distribution . Panel B is based on the intersection of countries included in this paper, Palomino et al (2019), Checchi et al (2016), and Suárez Álvarez and López Menéndez (2021), and the union of Stuhler (2018) and Carmichael et al (2020) (10 countries). Ranks in Stuhler (2018) and Carmichael et al (2020) are calculated from consensus estimates of the intergenerational earnings elasticity (IGE).…”

“…21 We focus on IGE estimates based on actual data linkages across generations and we exclude IGE estimates based on two-sample instrumental variable estimators to mitigate distortions through measurement error. Estimates are extracted from Stuhler (2018) and Carmichael et al (2020). Jointly both studies contain the following subset of our country sample: Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Sweden, Spain, and the United Kingdom.…”