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Trends in Absolute Income Mobility in North America and Europe

Robert Manduca (rmanduca@umich.edu), Maximilian Hell (hell@stanford.edu), Adrian Adermon, Jo Blanden (j.blanden@surrey.ac.uk), Espen Bratberg (espen.bratberg@econ.uib.no), Anne Gielen, Hans van Kipepersluis (hvankippersluis@ese.eur.nl), Keun Bok Lee (keunboklee@g.ucla.edu), Stephen Machin, Martin D. Munk (mdmunk@detfrieuniversitet.dk), Martin Nybom, Yuri Ostrovsky, Sumaiya Rahman (sumaiyar@protonmail.com) and Outi Sirniö (outi.sirnio@utu.fi)
Additional contact information
Robert Manduca: Department of Sociology, University of Michigan, Postal: Department of Sociology, University of Michigan
Maximilian Hell: Department of Sociology, Stanford University, Postal: Department of Sociology, Stanford University
Jo Blanden: Department of Economics, University of Surrey, Postal: Department of Economics, University of Surrey
Hans van Kipepersluis: Erasmus School of Economics, Postal: Erasmus School of Economics, The Netherlands
Keun Bok Lee: California Center for Population Research,, Postal: University of California, Los Angeles
Martin D. Munk: The Free University, Copenhagen, Postal: The Free University, Copenhagen
Sumaiya Rahman: Frontier Economics, Postal: Frontier Economics
Outi Sirniö: Department of Sociology, University of Turku, Postal: Department of Sociology, University of Turku

No 2020:11, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: We compute rates of absolute upward income mobility for the 1960-1987 birth cohorts in eight countries in North America and Europe. Rates and trends in absolute mobility varied dramatically across countries during this period: the US and Canada saw upward mobility rates near 50% for recent cohorts, while countries like Norway and Finland saw sustained rates above 70%. Decomposition analysis suggests that differences in the marginal income distributions, especially the amount of cross-cohort income inequality, were the primary driver of differing mobility rates across countries. We also demonstrate that absolute mobility rates can be accurately estimated without linked parent-child data.

Keywords: Intergenerational mobility; absolute mobility; inequality (search for similar items in EconPapers)
JEL-codes: J62 (search for similar items in EconPapers)
Pages: 87 pages
Date: 2020-09-01
New Economics Papers: this item is included in nep-eur, nep-his and nep-lab
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Citations: View citations in EconPapers (5)

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