INTERGENERATIONAL MOBILITY IN BRITAIN

(1997) - Lorraine Dearden, Stephen Machin

Journal: The Economic Journal
Link::
DOI::
Links::
Tags:: #paper #NCDS #Mobility
Cite Key:: [@Dearden1997]

Abstract

We use longitudinal data on children and their parents to assess the extent of intergenerational mobility in Britain. Based on data from the National Child Development Survey, a cohort of all individuals born in a week of March 1958, we Ænd that the extent of intergenerational mobility is limited. We report a clear intergenerational correlation between fathers and both sons and daughters in terms of labour market earnings and years of schooling. We also reveal an important asymmetry in intergenerational earnings mobility, with upward mobility from the bottom of the earnings distribution being more likely than downward mobility from the top.

Notes

“we Ænd that the extent of intergenerational mobility is limited. We report a clear intergenerational correlation between fathers and both sons and daughters in terms of labour market earnings and years of schooling.” (Dearden and Machin, 1997, p. 47)

“As for father's}mother's earnings, a drawback of the NCDS data is that we have only a single measure ± from NCDS3 in 1974, when the children were aged 16. Furthermore, there are a number of other potential problems with this measure. Firstly, earnings are not reported exactly, but are grouped into one of 12 bands with the 12th band having no upper limit.” (Dearden and Machin, 1997, p. 50)

“interviews for NCDS3 were conducted during the ` Three-Day Week ' of early 1974. This creates potential complications as it is not clear whether respondents reported weekly earnings or a reduced Three-Day Week level. Unfortunately, as Micklewright (1986) observes, no clues exist as to which measure was reported.” (Dearden and Machin, 1997, p. 51)

“relative weakness of the NCDS data set with regard to this is compensated for by the availability of detailed information on education, social class and regional attributes for both children and parents” (Dearden and Machin, 1997, p. 51)

“Regression estimates suggest that, depending on the econometric method used, the intergenerational mobility parameter b is of the order of 0±40 to 0±60 for men and 0±45 to 0±70 for women.” (Dearden and Machin, 1997, p. 63)