A BEJEAP Contributions article.

Abstract

Combining four surveys conducted over a forty year period, I calculate 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, I find little evidence that intergenerational mobility in Australia has significantly risen or fallen over time. Applying the same methodology to United States data, I find that Australian society exhibits more intergenerational mobility than the United States. My 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.

Submitted: April 4, 2007 · Accepted: December 13, 2007 · Published: December 26, 2007

Recommended Citation

Leigh, Andrew (2007) "Intergenerational Mobility in Australia," The B.E. Journal of Economic Analysis & Policy: Vol. 7 : Iss. 2 (Contributions), Article 6.
Available at: http://www.bepress.com/bejeap/vol7/iss2/art6

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