Intergenerational Income Elasticity in Turkey:A New Estimate

Murat Anıl Mercan and Hande Barlin
Additional contact information
Murat Anıl Mercan: Faculty of Business Administration, Department of Economics, Gebze Technical University, Kocaeli, Turkey
Hande Barlin: Faculty of Business Administration, Department of Economics, Gebze Technical University, Kocaeli, Turkey

International Journal of Research in Business and Social Science (2147-4478), 2016, vol. 5, issue 3, 30-37

Abstract: Social scientists have been intrigued by the relationship between generations based on different characteristics. Economists, has been especially interested in measuring intergenerational income elasticity, which looks at the relationship of parents and that of their children when they become adults and gives clue on trends of income inequality. Most of the literature concentrates on the experiences of developed countries and measurement issues. Nevertheless, new studies concerning intergenerational income elasticity is being undertaken in developing countries as the data become increasingly available for these countries. In this vein, there is only one previous study that investigates intergenerational income elasticity for Turkey. Mercan (2012) finds that intergenerational income elasticity is around 0.1 in Turkey, which depicts Turkey as a highly mobile country meaning that children of poor parents have a higher likelihood to have a better income status. However, his study does not depend on a longitudinal dataset, which might make Mercan’s (2012) estimate biased. Following Solon (1992) in using OLS for lower bound and instrumental variable (IV) for upper bound, this study puts forth a new estimate, which relies on a nationally representative and longitudinal dataset for Turkey. The study's estimate for intergenerational income elasticity varies between 0.3 and 0.6, which is much higher than the result of Mercan (2012), indicating that Turkey is a less mobile country than previously foreseen. Key Words: Intergenerational mobility, income, earnings

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/104/109 (application/pdf)
http://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/104 (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:rbs:ijbrss:v:5:y:2016:i:3:p:30-37

Access Statistics for this article

International Journal of Research in Business and Social Science (2147-4478) is currently edited by Prof.Dr.Umit Hacioglu

More articles in International Journal of Research in Business and Social Science (2147-4478) from Center for the Strategic Studies in Business and Finance Editorial Office,Baris Mah. Enver Adakan Cd. No: 5/8, Beylikduzu, Istanbul, Turkey. Contact information at EDIRC.
Bibliographic data for series maintained by Umit Hacioglu ().