Intergenerational Earnings Mobility: Changes across Cohorts in Britain

Ermisch, John; Nicoletti, Cheti

doi:10.2202/1935-1682.1755

“…The issues typically addressed in this type of research are a) income mobility (e.g. Solon, 2002;Corak, 2006;Oreopoulos, 2003;Nicoletti and Ermisch, 2007), and b) educational attainment (e.g. Hertz et al, 2007;Heineck and Riphahn, 2008).…”

Section: Introductionmentioning

confidence: 99%

Do smart parents raise smart children? The intergenerational transmission of cognitive abilities

Anger

¹

,

Heineck

²

2009

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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. Terms of use: Documents in SOEPpapers on Multidisciplinary Panel Data Research at DIW BerlinThis series presents research findings based either directly on data from the German SocioEconomic Panel Study (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences: economics, sociology, psychology, survey methodology, econometrics and applied statistics, educational science, political science, public health, behavioral genetics, demography, geography, and sport science.The decision to publish a submission in SOEPpapers is made by a board of editors chosen by the DIW Berlin to represent the wide range of disciplines covered by SOEP. There is no external referee process and papers are either accepted or rejected without revision. Papers appear in this series as works in progress and may also appear elsewhere. They often represent preliminary studies and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be requested from the author directly. Mohrenstr. 58, 10117 Berlin, Germany, sanger@diw.de, Tel: +49-30-89789-526, Fax: +49-30-89789-109 b Institute for Employment Research (IAB), Weddigenstr. 20-22, 90478 Nuremberg, Germany, guido.heineck@iab.de, Tel: +49-911-179-3105, Fax: +49-911-179-1479 ABSTRACTComplementing prior research on income mobility and educational transmission, we provide evidence on the intergenerational transmission of cognitive abilities using data from the German Socio-Economic Panel Study. Our estimates suggest that individuals' cognitive skills are positively related to the abilities of their parents, even when educational attainment and family background is controlled for. We differentiate between mothers' and fathers' IQ transmission and find different effects on the cognition of sons and daughters. We show that cognitive skills which are based on past learning are more strongly transmitted from parents to children than cognitive skills which are related to innate abilities. Our findings are not compatible with a pure genetic model, but rather point to the importance of parental investments for the cognitive outcomes of children. JEL:J10, J24, I20

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“…TSIV has been extensively used for the estimation of the IGE and its properties are discussed in several papers including Solon (1999) and Nicoletti & Ermisch (2007). These properties depend on the choice of the instrument.…”

Section: Estimation Methodsmentioning

confidence: 99%

Intergenerational earnings mobility in Japan among sons and daughters: levels and trends

Lefranc

¹

,

Ojima

²

,

Yoshida

³

2013

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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. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Father's income is predicted on the basis of a rich set of variables including education, occupation and job characteristics and we discuss changes in the Japanese earnings structure for cohorts born between the early 1900s and the 1960s. Our main results indicate that the intergenerational income elasticity (IGE) for both sons and daughters, in Japan lies around .35, which is an intermediate value, by international standards. We discuss the sensitivity of the IGE to using either personal or family income as the income variable for both fathers and children and perform some robustness analysis with respect to the first-step specification and to the age selection rule for children. We also examine changes across cohorts in the IGE. Results indicate that intergenerational mobility has been roughly stable over the last decades. Lastly, we estimate the intergenerational correlation of earnings. JEL Classification:D1, D3, J3

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“…Nicoletti and Ermisch (2008) argue that the instrumental variable estimator is numerically identical to the two stage least squares and in the context of two-sample, the latter is comparatively easier in terms of computation. In such a situation, the endogenous variables are replaced by the predicted value of the missing variable.…”

Section: Econometric Specificationmentioning

confidence: 99%

“…In such a situation, the endogenous variables are replaced by the predicted value of the missing variable. Nicoletti and Ermisch (2008) apply the twosample two-stage least squares (TS2SLS) method to address the issue of intergenerational mobility. Therefore, we follow Nicoletti and Ermisch (2008) and apply the TS2SLS for estimating mobility parameters.…”

Section: Econometric Specificationmentioning

confidence: 99%

“…Their findings suggest that the coefficients for father-child mobility and motherchild mobility range from 0.45 to 0.75 and 0.30 to 0.50 respectively. Nicoletti and Ermisch (2008) have also used the same dataset. They conclude that the intergenerational mobility did not change significantly across cohorts from 1950 to 1960; however, a negative trend in mobility was observed during 1961 to 1971.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Microeconometric analysis of earnings mobility of immigrants and ethnic minorities: evidence from the UK

Bidisha

¹

,

Das

²

,

McFarlane

³

2012

J Labour Market Res

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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. www.econstor.eu Abstract This paper analyzes intergenerational earnings mobility of immigrants and ethnic minorities in the UK. We use a two-sample technique and utilize the British Household Panel Survey for estimating the mobility coefficient. The estimation provides the evidence of differences in generational mobility based on immigration status and ethnic origin. Earnings of the native population tend to have a strong correlation with that of their fathers, a mobility coefficient of 0.34. However, for immigrants as well as ethnic minorities, the fathers' earnings have a smaller impact on childrens' earnings with a much lower coefficient estimate. Terms of use: Documents in Mikroökonometrische Analyse der Einkommensmobilität zwischen Generationen bei

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Intergenerational Earnings Mobility: Changes across Cohorts in Britain

Cited by 97 publications

References 27 publications

Do smart parents raise smart children? The intergenerational transmission of cognitive abilities

Do smart parents raise smart children? The intergenerational transmission of cognitive abilities

Intergenerational earnings mobility in Japan among sons and daughters: levels and trends

Microeconometric analysis of earnings mobility of immigrants and ethnic minorities: evidence from the UK

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