Intergenerational Earnings and Income Mobility in Spain

Abstract

This paper contributes to the large number of studies on intergenerational earnings and income mobility by providing new evidence for Spain. Since there are no Spanish surveys covering long-term information on both children and their fathers' income or earnings, we deal with this selection problem using the two-sample two-stage least squares estimator. We find that intergenerational mobility in Spain is similar to France, lower than in the Nordic countries and Britain and higher than in Italy and the United States. Furthermore, we use the Chadwick and Solon (2002) approach to explore the intergenerational mobility in the case of daughters overcoming employment selection, and we find similar results by gender.

Intergenerational Earnings Inequality: New Evidence From Italy

“…if females coming from a better background are more likely to participate in the labor market). To deal with this potential bias, following suggestions by Chadwick and Solon () and Cervini‐Plà (), we use, for daughters and sons, both individual and couples’ earnings (obtained by the adult child and by his/her co‐residing partner) as the dependent variable of the second‐stage regression.…”

“…The economic literature has also argued that the intergenerational transmission process in a country might be heterogeneous by geographical areas (Chetty et al , , Chetty and Hendren, , ) and children's gender (Chadwick and Solon, , Cervini‐Plà, ). However, no studies have investigated whether intergenerational inequality differs in Italy by regions and by gender.…”

“…Second, we compare the intergenerational association in the Italian geographical macro‐areas, also controlling for sons’ mobility across these areas. Finally, following the method proposed by Chadwick and Solon () and Cervini‐Plà (), we compare the intergenerational earnings’ association between fathers and sons and fathers and daughters, considering both family and individual earnings as outcome variables, to take into account a possible employment selection bias by females.…”

¿Influye la pobreza en la juventud en la pobreza en la etapa adulta? Un análisis para España

“…Podemos citar a Carabaña (1999), que analizaba la movilidad ocupacional, mientras que otros autores han analizado la transmisión entre generaciones del nivel educativo (Gil Izquierdo et al, 2010;Moreno Mínguez, 2011;Pascual, 2009), de la clase social (Marqués Perales y HerreraUsagre, 2010) o de los ingresos (Cervini-Plá, 2015;Pascual, 2009). …”

Intergenerational mobility: measurement and the role of borrowing constraints and inherited tastes

“…Note that these two measures of intergenerational mobility can only be used for quantitative variables. Several studies, like those of Mazumder (2005), Nicoletti and Ermisch (2007), Blanden et al (2004), Cervini-Plá (2015) have estimated the I E of earnings for several countries and their results give values of the I E between 0.5 and 0.6 for the US, 0.3 for UK, 0.43 for Spain and 0.25 for Nordic countries. This agrees with the information provided with the previous transition probability matrices of earnings, according to which the degree of mobility of earning in the US is smaller (i.e., the I E is larger) than in Europe.…”