Intergenerational Mobility of Economics Statusacross Three Generations: The Case of Taiwan

Zhi-xiao Jia

No 412, TERG Discussion Papers from Graduate School of Economics and Management, Tohoku University

Abstract: This paper analyzes the intergenerational mobility (IGM) of economic status across three generations in Taiwan. Grandfather-father-son relation is considered, and grandfathers' economic status is imputed based on their characteristics by applying Two-Sample Two- Stage Least Square (TS2SLS) approach. This study finds that the intergenerational elasticity (IGE) between fathers and sons is 0.154, while that between grandfathers and fathers is 0.349. Intergenerational elasticity between grandfathers and sons is 0.159, and roughly 62.83% to 66.60% of intergenerational elasticity between grandfathers and sons is explained by both parents' economic status, which implies that grandfathers' economic status is transmitted to sons' generation mainly through the indirect pathway.

Pages: 28 pages
Date: 2019-08
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Persistent link: https://EconPapers.repec.org/RePEc:toh:tergaa:412

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