Date of Award
Master of Science (MS)
Economics and Finance
This paper estimates the intergenerational income elasticity for four differently related groups. The results are IGE’s of 0.1368 between fathers and sons, 0.1734 between fathers and daughters, 0.2076 between mothers and sons and 0.2217 between mothers and daughters. These results are compared to previous studies and found to be significantly lower. Possible explanations are the simple passing of time between studies, the financial recession of 2008, and short-run data availability in the dataset. This study includes many control variables to find explanations of the IGE. The level of schooling is of sole importance and explains up to 49 percent of the IGE for fathers and around 33 percent of the IGE for mothers.
Mueller, Christina, "The Intergenerational Income Elasticity in the NLSY97 Dataset" (2014). All Graduate Plan B and other Reports. 396.