Nonlinearity in intergenerational income transmission: A cross-country analysis

The aim of this paper is to explore nonlinearity in intergenerational income transmission. We use a set of occupational tables in different countries to test nonlinearity. We also empirically address how policy variables can affect nonlinearity. Our findings suggest that concavity is supported in th...

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Bibliographic Details
Published in:Economic analysis and policy 2016-12, Vol.52, p.1-10
Main Authors: Berrittella, Maria, Dardanoni, Valentino
Format: Article
Language:English
Subjects:
Becker–Tomes model
Credit constraints
Education
Income inequality
Nonlinearity
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Summary:The aim of this paper is to explore nonlinearity in intergenerational income transmission. We use a set of occupational tables in different countries to test nonlinearity. We also empirically address how policy variables can affect nonlinearity. Our findings suggest that concavity is supported in those societies with less credit constraints, but with more poverty and income inequality; education has an increasing effect on convexity.
ISSN:0313-5926
DOI:10.1016/j.eap.2016.06.005