EconPapers    
Economics at your fingertips  
 

Intergenerational Earnings Mobility: Mechanism and Measurement

Honggao Cao

Labor and Demography from University Library of Munich, Germany

Abstract: Based on a model of two-stage life cycle, this paper investigates and measures intergerational relationships in lifetime earnings. Using data from PSID, I have found that the lifetime earnings transmission equation is non-linear. The elasticity of a son's lifetime earnings with respect to his father's, which may be loosely regarded as the inverse of intergenerational earnings mobility, is not constant across families. Specifically the relationship between the elasticity and the father's log lifetime earnings is of an inverted U- shape: the elasticity is relatively small at both ends of the spectrum, with the maximum in the middle.

Keywords: Intergenerational mobility; non-linear intergenerational relationship; lifetime earnings; earnings mobility; Ben-Porath Model; human capital investment; regression to the mean; PSID (search for similar items in EconPapers)
JEL-codes: J (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
Date: 2005-01-09
Note: Type of Document - pdf; pages: 43
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/lab/papers/0501/0501006.pdf (application/pdf)

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:wpa:wuwpla:0501006

Access Statistics for this paper

More papers in Labor and Demography from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ().

 
Page updated 2019-04-04
Handle: RePEc:wpa:wuwpla:0501006