We provide an overview of associations between income inequality and intergenerational mobility in the United States, Canada, and eight European countries. We analyze whether this correlation is observed across and within countries over time. We investigate Great Gatsby curves and perform metaregression analyses based on several papers on this topic. Results suggest that countries with high levels of inequality tend to have lower levels of mobility. Intergenerational income elasticities have stronger associations with the Gini coefficient compared to associations with the top 1 percent income share. Once models are controlled for methodological variables, country indicators, and paper indicators, correlations of mobility with the Gini coefficient lose significance but not with the top 1 percent income share. This result is an indication that recent increases in inequality at the top of the distribution might be negatively affecting mobility on a greater magnitude compared to variations across the income distribution.
Our aim is to provide an overview of associations between income inequality and intergenerational mobility in the United States, Canada, and eight European countries (Denmark, Finland, France, Germany, Italy, Norway, Sweden, and the United Kingdom). We analyze whether this correlation is observed across and within countries over time. Developed countries have been experiencing increases in inequality in recent decades, mostly due to a steep concentration of income at the top of the distribution. We investigate Great Gatsby curves and perform meta-regression analyses based upon several papers on this topic. Results suggest that countries with high levels of inequality tend to have lower levels of mobility. Intergenerational income elasticities have stronger associations with the Gini coefficient, compared to associations with the top one percent income share. Once models are controlled for methodological variables, country indicators, and paper indicators, correlations of mobility with the Gini coefficient lose significance, but not with the top one percent income share. This result is an indication that recent increases in inequality at the top of the distribution (captured by the top one percent income share) might be negatively affecting mobility on a greater magnitude, compared to variations across the income distribution (captured by the Gini coefficient).
Studies about intergenerational income mobility are increasingly popular across the social sciences. These studies require individuals’ own incomes and their parents’ incomes to be observed prospectively across decades. Because this longitudinal observation is less difficult among third-and-higher generation persons than among 1.5- and second-generation persons (particularly undocumented 1.5-generation immigrants), studies of intergenerational income mobility risk underrepresenting 1.5- and second-generation persons. This article investigates this underrepresentation of people from immigrant families and provides an analytic framework that adjusts for this underrepresentation in studies of intergenerational income mobility. Using data on the experiences of two US birth cohorts, early baby boomers (born 1948–1953) and late generation Xers/early millennials (born 1978–1983), we illustrate our method of adjusting for the underrepresentation of 1.5- and second-generation persons. We find that within the late generation-X/early-millennial cohort, the underrepresentation of 1.5- and second-generation persons does not substantially bias intergenerational income mobility estimates. However, inferences about change across cohorts are more affected by the underrepresentation of 1.5- and second-generation persons in data used to estimate intergenerational income mobility because the population shares of these groups grew across the two cohorts. We discuss how our approach can be applied to other settings, including other countries, and to cross-country comparisons. We encourage future research on these comparisons because the underrepresentation of 1.5- and second-generation persons might substantially affect understanding of cross-national income mobility differences.
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