Intergenerational Earnings Mobility in Mexico

Nancy Daza Báez

No 21-10, DoQSS Working Papers from Quantitative Social Science - UCL Social Research Institute, University College London

Abstract: Intergenerational mobility is a growing concern among academics and policymakers. However, due to the absence of information on earnings for successive generations, little evidence is available for developing countries. This paper adds to this scarce body of evidence by studying intergenerational mobility of earnings for Mexico. I rely on the Two-Sample Two-Stage Least Squares approach to estimate the intergenerational elasticity of earnings and the rank-rank coefficient at the national, urban and regional levels, considering the attenuation and life-cycle biases suffered by the estimators. The key results show less mobility than previously suggested. On average, 70.9% of the relative difference in father's earnings is transmitted to their children. Moreover, a 10 percentile point increase in the father's earnings rank is associated with a 3.15 percentile point increase in the son's earnings rank. At the regional level, strong intergenerational persistence is found in the South; whilst the North presents the highest intergenerational earnings mobility.

Keywords: Inequality; Intergenerational earnings mobility; Rank-rank coefficient; Two-Sample Two-Stage Least Squares; Mexico (search for similar items in EconPapers)
JEL-codes: C20 D31 D64 J62 (search for similar items in EconPapers)
Date: 2021-04-01
New Economics Papers: this item is included in nep-dev and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: Intergenerational Earnings Mobility in Mexico (2021)
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