The effect of parental background along the sons' earnings distribution: does one pattern fit for all?

This article sheds light on the differences in the mechanisms generating intergenerational inequality in the four largest Euro Area economies (Spain, Italy, Germany and France) looking at the association between parental background and sons' earnings along the sons' distribution. We find t...

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Bibliographic Details
Published in:Applied economics letters 2016-10, Vol.23 (15), p.1073-1078
Main Authors: Raitano, Michele, Vittori, Claudia, Vona, Francesco
Format: Article
Language:English
Subjects:
Earnings
Economic analysis
Economic models
Intergenerational inequality
international comparison
social mobility
unconditional quantile regressions
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Summary:This article sheds light on the differences in the mechanisms generating intergenerational inequality in the four largest Euro Area economies (Spain, Italy, Germany and France) looking at the association between parental background and sons' earnings along the sons' distribution. We find that in all countries returns to parental background increase along the sons' earnings distribution and the probability of ending up in high deciles is significantly correlated with parental background. However, although these findings lend support to the existence of a common mechanism, substantial differences in returns' steepness question the one-pattern-fits-all story.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504851.2015.1136386