ANALYSIS OF THREE-GENERATION INCOME MOBILITY IN TAIWAN

Using data from the 1999-2016 Panel Study of Family Dynamics (PSFD) and the model proposed by Solon (2014), this paper analyzes three-generation income mobility in Taiwan. The intergenerational income elasticity is estimated for both paternal and maternal families, where the age of children is restr...

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Bibliographic Details
Published in:Academia economic papers 2021-12, Vol.49 (4), p.651-690
Main Authors: Sheu, Sheng-Jang, Li, Ching-Hui, Hsieh, Hui-Chu
Format: Article
Language:Chinese
Subjects:
Economic theory
Economics
Family income
Generations
Grandparents
Social mobility
Online Access:Get full text
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Summary:Using data from the 1999-2016 Panel Study of Family Dynamics (PSFD) and the model proposed by Solon (2014), this paper analyzes three-generation income mobility in Taiwan. The intergenerational income elasticity is estimated for both paternal and maternal families, where the age of children is restricted to the period when their observed income is close to their permanent income. The estimated father-child income elasticity is 0.249-0.332. Controlling for the income of the father and paternal grandparents, the father-child income elasticity falls to 0.222-0.310. The grandparents-child income elasticity is 0.249-0.561, and the mother-child income elasticity is 0.208-0.269. Controlling for the income of the mother and maternal grandparents, the mother-child income elasticity rises to 0.235-0.276. The maternal grandparents-child income elasticity is, however, statistically insignificant. Our estimated results indicate that intergenerational income correlations are mostly observed on the paternal side in the long
ISSN:1018-161X
1810-4851