The geography of intergenerational mobility — Danish evidence

• Published in: Economics letters 2020-04, Vol.189, p.109024, Article 109024
• Main Authors: Eriksen, Jesper, Munk, Martin D.
• Format: Article
• Language: English
• Subjects: Births; Denmark; Geography; Immigrants; Income mobility; Income taxes; Intergenerational Mobility; Intergenerational relationships; Labor force; Mobility; Single parents; Socioeconomic status
• ISSN: 0165-1765; 1873-7374
• DOI: 10.1016/j.econlet.2020.109024

We provide within-country intergenerational income rank mobility estimates from Denmark. We find the highest intergenerational income mobility within middle-income rural municipalities and the lowest intergenerational income mobility within urban and poor rural municipalities. Relative mobility within Denmark is similar to relative mobility within Canada and larger than within the United States, while absolute rank mobility at the 25th and 75th parental income percentiles vary more in the United States than in Denmark. Within-country intergenerational mobility is positively correlated with the share of working-age employed and married inhabitants, and negatively with the share of single parents, teen births, non-western immigrants, and inhabitants outside the labor force. •First study of the geography of intergenerational income rank mobility in Denmark.•Middle-income rural municipalities have the highest intergenerational income mobility.•Urban and poor rural municipalities have the lowest intergenerational income mobility.•Relative mobility similar to Canada, less variation of absolute mobility than in US.•Strongest predictors are employment, marital status, teen births, and immigrants.