The intergenerational income mobility and its estimation methods. A comparative analysis for Argentina and Chile

Authors

  • Maribel Jiménez Consejo Nacional de Investigaciones Científicas y Técnicas (CONICET), Instituto de Estudios Laborales y del Desarrollo Económico (IELDE), Facultad de Ciencias Económicas, Universidad Nacional de Salta (UNSa), Salta, Argentina

Keywords:

Intergenerational mobility, Income, Elasticity, Estimation methods

Abstract

The main objective of this article is to evaluate the performance, based on data for Chile and Argentina, of different estimators of the intergenerational elasticity of income (IGE), which is the measurement of immobility of incomes between parents and children most com-monly used in the empirical literature. In order to compute the IGE, not only the traditionalintergenerational model is considered, but also an alternative model and a new estimation stra-tegy is proposed for cross-sectional data. A comparative analysis of income mobility betweengenerations for Chile and Argentina is also made from methodologically comparable estima-tes. For this, the data are taken from the CASEN Panel Survey 1996-2001-2006 of Chile thatconstitutes one of the longest data panels available for a Latin American country, as well asdata from various surveys available for Argentina. The estimation results of the traditionalmodel of permanent income suggest that intergenerational income mobility (IIM) tends to belower in Chile than in Argentina. However, when considering the alternative intergenerationalmodel, the estimates obtained with the new method suggest that IIM levels are similar in bothcountries, and are relatively low.

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Published

2018-01-01

Issue

Vol. 41 No. 115 (2018): Pages 1-150 (January-April 2018)

Section

Articles

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