Temporal and Regional Variation in Intergenerational Income Mobility in New Zealand

Ryan Greenaway-McGrevy and Yun So

No 22, Working Papers from University of Auckland, Economic Policy Center (EPC)

Abstract: This paper documents variation in intergenerational income mobility (IIM) over time and between different regions of New Zealand. Our sample is a cohort of males born between 1963 and 1982 that reached adulthood over a period spanning the policy reforms of the 1980s. We show that the intergenerational elasticity of income (IGE) measure of IIM is higher for men born later in the sample, suggesting that IIM has decreased over the period of rising income inequality following the reforms. To more closely examine the statistical association between income inequality and IIM, we exploit spatiotemporal variation in IGE estimates and Gini coefficients to show that growing up in regions or periods in which there is higher income inequality is associated with lower IIM. Although these results do not imply causality, they are consistent with an international literature that establishes a statistical association between income inequality and IIM.

Keywords: Intergenerational Income Mobility; Intergenerational Elasticity of Income; Income Inequality (search for similar items in EconPapers)
JEL-codes: D31 D63 J62 (search for similar items in EconPapers)
Date: 2024-10
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Journal Article: Temporal and regional variations in intergenerational income mobility in New Zealand (2025)
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Persistent link: https://EconPapers.repec.org/RePEc:cyc:wpaper:022

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