INTERGENERATIONAL INCOME MOBILITY IN TAIWAN: EVIDENCE FROM TS2SLS AND STRUCTURAL QUANTILE REGRESSION
Kamhon Kan (kk@sinica.edu.tw),
I-Hsin Li and
Ruei-Hua Wang
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I-Hsin Li: Taiwan Institute of Economic Research
Ruei-Hua Wang: Taiwan Research Institute, http://www.tri.org.tw/
No 14-A008, IEAS Working Paper : academic research from Institute of Economics, Academia Sinica, Taipei, Taiwan
Abstract:
We estimate intergenerational income mobility in Taiwan, employing repeated cross-sectional data. We find that the father-son, father-daughter,mother-son and mother-daughter income elasticitiesat- 40 are around 0.18, 0.23, 0.50 and 0.54, respectively. Moreover, the mother-child income elasticity increases slightly over children’s birth year, while the father-child elasticity is stable, but we do not find any time trend in elasticities. Since mean-regression results may not be informative in fast growing economies, we estimate relative mobility via structural quantile regression models. The results indicate that parents’ income affects children’s income mainly through the propagation of children’s income shocks, rather than affecting the level directly.
Keywords: Intergenerational income mobility; Structural quantile regression; Two-sample two-stage least squares (search for similar items in EconPapers)
JEL-codes: J62 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2014-08
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Journal Article: Intergenerational Income Mobility in Taiwan: Evidence from TS2SLS and Structural Quantile Regression (2015)
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