Our
objective is to obtain an accurate estimate of the degree of intergenerational
income mobility in Canada. We use
income tax information on
about
400,000 father-son pairs, and find intergenerational earnings elasticities to be
about 0.2. Earnings mobility tends to be slightly greater than
income mobility, but nonparametric
techniques uncover significant nonlinearities in both of these relationships.
Intergenerational earnings mobility
is greater at the lower end of the
income distribution than at the upper
end, and displays an inverted
V-shape elsewhere. Intergenerational
income mobility follows roughly the same pattern, but is much lower at the very top of the income
distribution.
Miles
Corak and Andrew Heisz are with the Analytical Studies Branch of Statistics
Canada. An earlier version
of this paper was circulated under the title "Unto the Sons: the
Intergenerational Income Mobility of Canadian Men. " Previous drafts also
were presented to the meetings of the Society of Labor
Economists, the
European Society for Population Economics, the Canadian Economics Association,
and to departmental
seminars at Carleton University, Cornell University, the OECD, Statistics
Canada,
and Syracuse University,.
The authors would like to thank
Richard Burkhauser, Kenneth Couch,
Stephen Jenkins,
Stephen Jones, Dean Lillard, Harry Paarsch, James Pesando, Andreas Stich, and
two
anonymous referees
for their comments and suggestions. They
would also like to thank Clive Loader
for making the S-plus
code used in the nonparametric analysis available, and to acknowledge the help
of Jean Leduc, Linda
Standish, and André St. Louis of Statistics Canada in constructing the data
set.
They also thank
Sophie Lefebvre for her able research assistance.
The contents of the paper are the
sole responsibility
of the authors and in particular should not be attributed to Statistics Canada.
Correspondence can
be directed to coramil@statcan.ca.
© 2002 by the Board of Regents of the University of Wisconsin System
US ISSN 0022-166X
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