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Intergenerational mobility in lifetime income

Author

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  • Moshe Justman

    (Ben Gurion University)

  • Hadas Stiassnie

    (Ben Gurion University)

Abstract
The two-stage approach to estimating intergenerational income mobility from panel data, proposed here, reduces age-related attenuation error and measurement error. The first stage estimates parents' and children's lifetime family income from linked longitudinal; the second stage uses these estimates to derive measures of absolute, relative and rank mobility. Applying this to United States PSID data, for sons born between 1952 and 1981 and their fathers, we find multiple indications of a decline in intergenerational mobility. This approach is robust to the addition of new data, and can be applied to improve the accuracy of mobility estimates derived from snapshot data.

Suggested Citation

  • Moshe Justman & Hadas Stiassnie, 2020. "Intergenerational mobility in lifetime income," Working Papers 522, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2020-522
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    File URL: http://www.ecineq.org/milano/WP/ECINEQ2020-522.pdf
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    References listed on IDEAS

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    Cited by:

    1. Brandén, Gunnar & Nybom, Martin & Vosters, Kelly, 2023. "Like Mother, like Child? The Rise of Women's Intergenerational Income Persistence in Sweden and the United States," IZA Discussion Papers 16152, Institute of Labor Economics (IZA).
    2. Rozinskaya, N. & Drobyshevskaya, T., 2022. "Quantitative estimates of intergenerational mobility," Journal of the New Economic Association, New Economic Association, vol. 57(5), pages 93-111.
    3. Jonathan Davis & Bhashkar Mazumder, 2017. "The Decline in Intergenerational Mobility After 1980," Working Paper Series WP-2017-5, Federal Reserve Bank of Chicago, revised 14 Jan 2022.
    4. Lijie Song, 2022. "Examining the Relationship Between Intergenerational Upward Mobility and Inequality: Evidence from Panel Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 1-27, August.
    5. Daniel S. Hamermesh & Anwen Zhang, 2024. "The Economic Impact of Heritable Physical Traits: Hot Parents, Rich Kid?," NBER Working Papers 32086, National Bureau of Economic Research, Inc.
    6. Moshe Justman & Hadas Stiassnie, 2021. "Inequality in Lifetime Earnings, 1986-2012," Working Papers 579, ECINEQ, Society for the Study of Economic Inequality.

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