Intergenerational earnings mobility and macroeconomic shocks: Evidence based on administrative records

Martín Leites, Tatiana Pérez, Xavi Ramos (xavi.ramos@uab.cat), Sofía Santín and Joan Vilá

No 1896, Research Department working papers from CAF Development Bank Of Latinamerica

Abstract: This paper provides novel evidence on trends in intergenerational earnings mobility in a developing country and explores some transmission mechanisms associated with the characteristics of the labor market. Using a novel social security records database for Uruguay, we study the intergenerational earning ranking association from cohorts between 1966-1983. To explore intergenerational transmission mechanisms, we exploit the arguably exogenous variation induced by the 2002 macroeconomic crisis to analyse the impact of parental displacement from jobs on their children’s labor trajectories. First, we focus on the effect of the crisis on parents’ labor market performance. In a second stage, we use this information as a shock to identify the effect on children outcomes of a parent’s employment shock. Results suggest (i) heterogeneity on the degree of intergenerational earning mobility across birth cohorts; (ii) weak evidence of downward trend in relative mobility, (iii) intergenerational transmission of the shock produced by the 2002 crisis.

Keywords: Desarrollo; Desempleo; Economía; Estudiantes; Familia; Investigación socioeconómica; Políticas públicas; Prácticas laborales y pasantías (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-his and nep-lam
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://scioteca.caf.com/handle/123456789/1896

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dbl:dblwop:1896

Access Statistics for this paper

More papers in Research Department working papers from CAF Development Bank Of Latinamerica Contact information at EDIRC.
Bibliographic data for series maintained by Pablo Rolando (prolando@caf.com).