Nonlinearities in intergenerational earnings mobility: Consequences for cross-country comparisons

A1 Originalartikel i en vetenskaplig tidskrift (referentgranskad)

Interna författare/redaktörer

Publikationens författare: Bernt Bratsberg, Knut Røed, Oddbjørn Raaum, Robin Naylor, Markus Jäntti, Tor Eriksson, Eva Österbacka
Publiceringsår: 2007
Tidskrift: Economic Journal
Tidskriftsakronym: ECON J
Volym: 117
Nummer: 519
Artikelns första sida, sidnummer: C72
Artikelns sista sida, sidnummer: C92
Antal sidor: 21
ISSN: 0013-0133


We show that the patterns of intergenerational earnings mobility in Denmark, Finland and Norway, unlike those for the US and the UK, are highly nonlinear. The Nordic relationship between log earnings of sons and fathers is flat in the lower segments of the fathers' earnings distribution - sons growing up in the poorest households have the same adult earnings prospects as sons in moderately poor households - and is increasingly positive in middle and upper segments. This convex pattern contrasts sharply with our findings for the US and the UK, where the relationship is much closer to being linear. As a result, cross-country comparisons of intergenerational earnings elasticities may be misleading with respect to transmission mechanisms in the central parts of the earnings distribution and uninformative in the tails of the distribution.

Senast uppdaterad 2020-27-01 vid 03:11