Intergenerational earnings mobility in Chile: the tale of the upper tail

Javier Cortés Orihuela (), Juan D. Díaz (), Pablo Gutiérrez Cubillos (), Pablo Troncoso and Gabriel I. Villarroel ()
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Javier Cortés Orihuela: University of British Columbia
Juan D. Díaz: University of Chile
Pablo Gutiérrez Cubillos: University of Chile
Gabriel I. Villarroel: Dirección de Presupuestos (DIPRES)

Empirical Economics, 2024, vol. 67, issue 5, No 15, 2447 pages

Abstract: Abstract This paper provides the first estimates of intergenerational earnings mobility in Chile using administrative data linking parents’ and children’s earnings from the formal private sector. We calculate mobility measures across the earnings distribution, revealing high mobility in the bottom 80% and 65% of the parents’ and children’s distribution, respectively. However, we observe significant persistence in the upper tail of the earnings distribution. Additionally, we identify notable gender heterogeneities in these mobility patterns. Specifically, the intergenerational mobility gender gap shows a nonlinear relationship with respect to parental earnings. Furthermore, we find that differences in mobility between the upper tail of the earnings distribution and the rest of the population are more pronounced for daughters than for sons. These findings suggest that the dynamics of gender-based mobility at the upper tail of the earnings distribution differ from those observed in the rest of the population.

Keywords: Intergenerational mobility; Administrative linked data; Gender heterogeneity (search for similar items in EconPapers)
JEL-codes: J31 J62 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s00181-024-02607-x

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