Journal article

Intergenerational mobility in Australia

5 Feb 2008
Description

Combining four surveys conducted over a forty year period, Leigh calculates intergenerational earnings elasticities for Australia, using predicted earnings in parents’ occupations as a proxy for actual parental earnings. In the most recent survey, the elasticity of sons’ wages with respect to fathers’ wages is around 0.2. Comparing this estimate with earlier surveys, Leigh finds little evidence that intergenerational mobility in Australia has significantly risen or fallen over time. Applying the same methodology to United States data, he finds that Australian society exhibits more intergenerational mobility than the United States. His method appears to slightly overstate the degree of intergenerational mobility; if the true intergenerational earnings elasticity in the United States is 0.4–0.6 (as recent studies have suggested), then the intergenerational earnings elasticity in Australia is probably around 0.2–0.3.

Publication Details
Volume: 
7
Issue: 
2
License Type: 
All Rights Reserved
Published year only: 
2008
13
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