Trends in Absolute Income Mobility in North America and Europe

94 Pages Posted: 14 Jul 2020

See all articles by Robert Manduca

Robert Manduca

Harvard University

Maximilian Hell

Stanford University - Stanford Center on Poverty & Inequality

Adrian Adermon

Uppsala University

Jo Blanden

University of Surrey; London School of Economics; IZA Institute of Labor Economics

Espen Bratberg

University of Bergen

Anne C. Gielen

Institute for the Study of Labor (IZA); Maastricht University

Hans van Kippersluis

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Keun Bok Lee

University of California

Stephen J. Machin

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); London School of Economics & Political Science (LSE) - Department of Economics

Martin Munk

Danish National Institute of Social Research (SFI)

Martin Nybom

Stockholm University - Swedish Institute for Social Research (SOFI)

Yuri Ostrovsky

affiliation not provided to SSRN

Sumaiya Rahman

Frontier Economics Inc.

Outi Sirniö

University of Turku

Abstract

We compute rates of absolute upward income mobility for the 1960-1987 birth cohorts in eight countries in North America and Europe. Rates and trends in absolute mobility varied dramatically across countries during this period: the US and Canada saw upward mobility rates near 50% for recent cohorts, while countries like Norway and Finland saw sustained rates above 70%. Decomposition analysis suggests that differences in the marginal income distributions, especially the amount of cross-cohort income inequality, were the primary driver of differing mobility rates across countries. We also demonstrate that absolute mobility rates can be accurately estimated without linked parent-child data.

Keywords: absolute intergenerational mobility, income, international comparison

JEL Classification: J62, D31, P52

Suggested Citation

Manduca, Robert and Hell, Maximilian and Adermon, Adrian and Blanden, Jo and Bratberg, Espen and Gielen, Anne C. and van Kippersluis, Hans and Lee, Keun Bok and Machin, Stephen J. and Munk, Martin and Nybom, Martin and Ostrovsky, Yuri and Rahman, Sumaiya and Sirniö, Outi, Trends in Absolute Income Mobility in North America and Europe. IZA Discussion Paper No. 13456, Available at SSRN: https://ssrn.com/abstract=3648796

Robert Manduca

Harvard University

Maximilian Hell

Stanford University - Stanford Center on Poverty & Inequality ( email )

450 Serra Mall, Building 80
Stanford, CA 94305-7208
United States

Adrian Adermon

Uppsala University ( email )

Box 513
Uppsala, 751 20
Sweden

Jo Blanden (Contact Author)

University of Surrey ( email )

Guildford
Guildford, Surrey GU2 5XH
United Kingdom

London School of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Espen Bratberg

University of Bergen

Muséplassen 1
N-5008 Bergen, +47 55 58
Norway

Anne C. Gielen

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands
+31 43 3883887 (Phone)
+31 43 3881450 (Fax)

HOME PAGE: http://www.annegielen.nl

Hans Van Kippersluis

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

Burg. Oudlaan 50
Rotterdam, NL 3062 PA
Netherlands

Keun Bok Lee

University of California

540 Alumni Ln
Davis, CA 95616
United States

Stephen J. Machin

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

London School of Economics & Political Science (LSE) - Department of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Martin Munk

Danish National Institute of Social Research (SFI) ( email )

Herluf Trolles Gade 11
DK-1052
Copenhagen K, DK-1052
Denmark

Martin Nybom

Stockholm University - Swedish Institute for Social Research (SOFI) ( email )

Kyrkgatan 43B
SE-106 91 Stockholm
Sweden

Yuri Ostrovsky

affiliation not provided to SSRN ( email )

Sumaiya Rahman

Frontier Economics Inc. ( email )

Two Brattle Square
Cambridge, MA 02138
United States

Outi Sirniö

University of Turku

Turku, 20014
Finland

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