Estimation of intergenerational mobility in small samples: evidence from German survey data

Iryna Kyzyma, Olaf Groh‑Samberg

Research output: Contribution to journalArticle

Abstract

Using data from the German socio-economic panel, this paper provides new evidence on intergenerational mobility in Germany by focusing on intergenerational association in ranks-i.e. positions, which parents and children occupy in their respective income distributions. We fnd that the association of children’s ranks with ranks of their fathers is about 0.242 for individual labor earnings and it is higher for sons than for daughters. It is also higher in East Germany compared to West Germany. The results further show that rank-based measures of mobility are less sensitive than conventional measures of intergenerational income elasticity to diferent methodological and sample specifcation choices, such as the stages of the life cycle when incomes of children and parents are measured, the number of years for which incomes are considered, the treatment of zero values in income variables and the choice of annual versus hourly earnings. Moreover, they are more robust for sub-group comparisons of intergenerational mobility (e.g. across gender and region). This evidence suggests that, similarly to large administrative datasets, rank-based measures of intergenerational mobility perform better than elasticity-based measures in small samples based on survey data.
Original languageEnglish
JournalSocial Indicators Research
DOIs
Publication statusE-pub ahead of print - 5 Jun 2020

Keywords

  • Intergenerational income elasticity
  • Intergenerational mobility
  • Rank-based measures of mobility
  • Robustness
  • Small samples

Projects

IMCHILD: The impact of childhood circumstances on individual outcomes over the life-course

Van Kerm, P., Peichl, A., Waldenström, D., Lefranc, A., Trannoy, A., Iryna, K., Adermon, A., Kanbur, R., Roemer, J., Andreoli, F., Doorley, K. & Hartung, A.

Luxembourg Institute of Socio-Economic Research (LISER), Fonds National de la Recherche-FNR

1/01/1831/12/20

Project: Research

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