Overview of intergenerational earnings mobility in Germany

Céline Lecavelier des Etangs-Levallois ()
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Céline Lecavelier des Etangs-Levallois: Université de Cergy-Pontoise, THEMA

No 2017-11, THEMA Working Papers from THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise

Abstract: This paper analyses intergenerational earnings mobility in Germany, reviewing the recent literature, further investigating the impact of sampling and methodological strategies and presenting alternative results. Using data from the German SocioEconomic Panel (SOEP), the aim is to evaluate the role of father's earnings level on son's one, taking a close look at attenuation and life-cycle biases. We first estimate the association of current and lifetime earnings over the life-cycle. We then estimate the intergenerational elasticity at 0.3. We average fathers' earnings over different periods of time to evaluate and reduce attenuation bias, and we handle life-cycle bias by controlling son's age span or adding the interaction between son's age and father's earnings in the regression equation.

Keywords: intergenerational mobility; life-cycle bias; earnings; Germany; SOEP (search for similar items in EconPapers)
JEL-codes: D31 J62 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-eur
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Persistent link: https://EconPapers.repec.org/RePEc:ema:worpap:2017-11

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