Trends in Intergenerational Earnings Mobility

Angela R. Fertig
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Angela R. Fertig: Princeton University

No 75, Royal Economic Society Annual Conference 2002 from Royal Economic Society

Abstract: This paper examines trends in intergenerational earnings mobility by estimating ordinary least squares, quantile regression, and transition matrix coefficients using five cohorts from the Panel Study of Income Dynamics, observed between 1968 and 1993. The results indicate that mobility increased for sons with respect to fathers and remained constant for sons and daughters with respect to mothers. Moreover, the findings from the father-son sample suggest that the difference between the mobility levels of the rich and the poor narrowed over this period. The estimated pattern of changing mobility is consistent with an increasing rate of regression to the mean.

Date: 2002-08-29
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