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Nonlinearities in Intergenerational Earnings Mobility

Consequences for Cross‐Country Comparisons

Bibliographic Data

ID9710095
AuthorsBernt Bratsberg (0000-0002-6874-3412, Frisch Centre for Economic Research), Knut Røed (0000-0002-9280-6145, Frisch Centre for Economic Research), Oddbjørn Raaum (Frisch Centre for Economic Research), Robin Naylor (0000-0001-6880-6463, University of Warwick), Markus Ja¨ntti (A ̊bo Akademi), Markus Ja ̈ntti (Åbo Akademi University), Thomas Eriksson (0000-0001-9309-5499), Tor Eriksson (A ̊rhus Business School), Eva O¨sterbacka (A ̊bo Akademi), Eva O ̈sterbacka (Åbo Akademi University)
Year2007
Volume117
Issue519
PagesC72-C92
Publication date2007-03-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2007.02036.x
OpenAlexW2162168635
LanguageEN
Citations received66
References cited23

We show that the patterns of intergenerational earnings mobility in Denmark, Finland and Norway, unlike those for the US and the UK, are highly nonlinear. The Nordic relationship between log earnings of sons and fathers is flat in the lower segments of the fathers' earnings distribution - sons growing up in the poorest households have the same adult earnings prospects as sons in moderately poor households - and is increasingly positive in middle and upper segments. This convex pattern contrasts sharply with our findings for the US and the UK, where the relationship is much closer to being linear. As a result, cross-country comparisons of intergenerational earnings elasticities may be misleading with respect to transmission mechanisms in the central parts of the earnings distribution and uninformative in the tails of the distribution. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007

Demographic economics · Distribution (mathematics · Earnings · Economics · Labour economics · Political science · Social mobility · Financial Literacy, Pension, Retirement Analysis · Intergenerational and Educational Inequality Studies · Labor market dynamics and wage inequality · Mathematics

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Unique citing works66
Citations per year3,14
Citation span2005 - 2026 (22)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 66

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