Intergenerational earnings mobility in Japan among sons and daughters: levels and trends

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. Father's income is predicted on the basis of a rich set of variables including education, occupation and job characteristics and we discuss changes in the Japanese earnings structure for cohorts born between the early 1900s and the 1960s. Our main results indicate that the intergenerational income elasticity (IGE) for both sons and daughters, in Japan lies around .35, which is an intermediate value, by international standards. We discuss the sensitivity of the IGE to using either personal or family income as the income variable for both fathers and children and perform some robustness analysis with respect to the first-step specification and to the age selection rule for children. We also examine changes across cohorts in the IGE. Results indicate that intergenerational mobility has been roughly stable over the last decades. Lastly, we estimate the intergenerational correlation of earnings. JEL Classification:D1, D3, J3

Intergenerational Wealth Elasticity in Japan

“…The intergenerational wealth elasticity as estimated by Japanese data is in the range of 0.266−0.367, which is same as or smaller than the intergenerational income elasticity. Studies that estimate the intergenerational income elasticity between sons and fathers using Japanese data find, for example, values of 0.40–0.41 (Ueda, ) and 0.35 (Lefranc et al ., ). Corak () provides an international comparison of intergenerational income elasticities and reports that the Japanese income elasticity (0.34) is smaller than in the USA (0.47) and larger than in Denmark (0.15).…”

Intergenerational Mobility of Earnings and Income Among Sons and Daughters in Vietnam

“…comparetively the same mobile position as Japan (Lefranc et al 2014), Taiwan (Kan et al 2015), and South Korea (Kim 2013) in Asia. Meanwhile, the results indicate that…”

“…In Asia, few analogous studies are mainly conducted in developed countries such as Japan (Lefranc et al 2014;Ueda 2009), South Korea (Lee 2014;Ueda 2013), Taiwan (Kan et al 2015;Sun and Ueda 2015), and Singapore (Ng 2007(Ng , 2013Ng et al 2009). …”

“…Inoue and Solon (2010) show that in the two-sample environment, TS2SLS is asymptotically more efficient than TSIV. Numerous studies have used TS2SLS to investigate intergenerational mobility such as Fortin and Lefebvre (1998) for Canada, Lefranc and Trannoy (2005) for France, Dunn (2007) for Brazil, Gong et al (2012) for urban China, Piraino (2015) for South Africa, Lefranc et al (2014) for Japan, or Cervini-Plá (2014) for Spain.…”

“…Empirically, the predictor set of fathers' economic outcome is probably education (Lefranc et al 2010), or occupation (Fortin and Lefebvre 1998), or education and occupation (Björklund and Jantti 1997;Núñez and Miranda 2010;Ueda and Sun 2013), or education, occupation, and industry (Gong et al 2012;Kim 2013), or education, occupation, and geographical region (Lefranc et al 2014). This study uses the set of education, occupation, industry, and geographical region to predict fathers' individual earnings.…”