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Intergenerational income mobility in France: A comparative and geographic analysis

Gustave Kenedi and Louis Sirugue

Journal of Public Economics, 2023, vol. 226, issue C

Abstract: We provide new estimates of intergenerational income mobility in France for children born in the 1970s using rich administrative data. Since parents’ incomes are not observed, we employ a two-sample two-stage least squares estimation. We show, using the Panel Study of Income Dynamics, that this method slightly underestimates rank-based measures of intergenerational persistence. Our results suggest France is characterized by a strong persistence relative to other developed countries. 9.7% of children born to parents in the bottom 20% reach the top 20% in adulthood, four times less than children from the top 20%. We uncover substantial spatial variations in intergenerational mobility across departments, and a positive relationship between geographic mobility and intergenerational upward mobility. The expected income rank of individuals from the bottom of the parent income distribution who moved towards high-income departments is around the same as the expected income rank of individuals from the 75th percentile who stayed in their childhood department.

Keywords: Intergenerational mobility; Geographic mobility; Spatial variations (search for similar items in EconPapers)
JEL-codes: C18 J61 J62 R23 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:226:y:2023:i:c:s0047272723001561

DOI: 10.1016/j.jpubeco.2023.104974

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