Intergenerational mobility along the income distribution: estimates using administrative data for a developing country

Martin Leites, Xavi Ramos (), Cecilia Rodríguez and Vilá Joan ()
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Cecilia Rodríguez: Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía
Vilá Joan: Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía

No 22-05, Documentos de Trabajo (working papers) from Instituto de Economía - IECON

Abstract: In this paper, we provide novel estimates of intergenerational mobility for Uruguay that for the first time in a developing country, are based on administrative tax-social security records. We estimate the Intergenerational Ranking Association (IRA) and explore non-linearities. We explore alternatives to address the role of informal labour market, which is one of the main challenges to obtain precise measure of intergenerational mobility for a developing country. We have three main results: first, the level of persistence is higher when we consider individuals with less attachment to the formal labour market. Second, we find evidence of non-linearities in the degree of intergenerational persistence, being substantially higher for high-income households. Finally, there is heterogeneity by gender on the degree of intergenerational mobility, with mother-daughter transmission being the most persistent.

Keywords: intergenerational income mobility; inequality; top incomes; non-linearities; formal labour market (search for similar items in EconPapers)
JEL-codes: D31 E26 J62 (search for similar items in EconPapers)
Pages: 67 pages
Date: 2022-05
New Economics Papers: this item is included in nep-dev, nep-iue and nep-lam
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://hdl.handle.net/20.500.12008/31899

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Persistent link: https://EconPapers.repec.org/RePEc:ulr:wpaper:dt-05-22

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