Intergenerational transmission of economic success in Austria with a focus on migration and gender

Daniel Reiter (), Mario Thomas Palz and Margareta Kreimer
Additional contact information
Daniel Reiter: University of Graz
Mario Thomas Palz: University of Graz
Margareta Kreimer: University of Graz

Journal for Labour Market Research, 2020, vol. 54, issue 1, 1-20

Abstract: Abstract In this paper, we analyse the intergenerational transmission of economic success in Austria using the European Union Statistics on Income and Living Conditions 2011 dataset (EU-SILC 2011). Starting point of the investigation is a two-step estimation procedure, where we detect a significant positve intergenerational association between the economic situation of the parental household and educational attainments as well as gross hourly wages of their male and female descendants independently. Furthermore, we shed some light on the intergenerational social mobility black box by explaining the direct effect of the income situation of the parental generation on attainable wages of the child generation within the transmission system. It turns out that this effect is significantly underestimated when applying ordinary least squares regressions only, where the perceived socioeconomic status is taken exogenous. Finally, we apply instrumental variable quantile regressions to demonstrate that the direct intergenerational economic association between parents and their descendants is strongest for top earners. Alongside this proceeding, we introduce an alternative way to think about the impact of a bundle of additional intergenerational transmission channels like cognitive ability, noncognitive personal traits, and aspects of physical appearance on an empirical level. Overall, the findings of the paper, where special attention is paid to migrants, offer a better understanding on the intergenerational transmission of economic success mechanism and to what extent this process influences income persistence between generations.

Keywords: Intergenerational social mobility; Gender; Migrants; Labour market; Instrumental variable quantile regression (search for similar items in EconPapers)
JEL-codes: C36 J15 J16 J31 J62 J68 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1186/s12651-020-00272-y Abstract (text/html)

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:spr:jlabrs:v:54:y:2020:i:1:d:10.1186_s12651-020-00272-y

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/12651

DOI: 10.1186/s12651-020-00272-y

Access Statistics for this article

Journal for Labour Market Research is currently edited by Joachim Möller

More articles in Journal for Labour Market Research from Springer, Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().