2014
Is the United States Still a Land of Opportunity? Recent Trends in Intergenerational Mobility
Abstract: We present new evidence on trends in intergenerational mobility in the United States using administrative earnings records. We find that percentile rank-based measures of intergenerational mobility have remained extremely stable for the 1971-1993 birth cohorts. For children born between 1971 and 1986, we measure intergenerational mobility based on the correlation between parent and child income percentile ranks. For more recent cohorts, we measure mobility as the correlation between a child's probability of at…
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Cited by 754 publications
(570 citation statements)
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“…Intergenerational rank-rank correlations have changed little, if at all, since the beginning of the 20th century. This trend is consistent with recent findings from Chetty et al (17) and Hout (18), who use similar rank-based methods for data that cover only the 1970s to the present. Indeed, the dominant hypothesis in the literature was long ago proposed by Featherman et al (13), that relative mobility in all industrialized societies is constant or trendless, although empirical research using loglinear analysis has documented increases in relative mobility in some industrialized societies (e.g., refs.…”
Section: Resultssupporting
confidence: 92%
“…Intergenerational rank-rank correlations have changed little, if at all, since the beginning of the 20th century. This trend is consistent with recent findings from Chetty et al (17) and Hout (18), who use similar rank-based methods for data that cover only the 1970s to the present. Indeed, the dominant hypothesis in the literature was long ago proposed by Featherman et al (13), that relative mobility in all industrialized societies is constant or trendless, although empirical research using loglinear analysis has documented increases in relative mobility in some industrialized societies (e.g., refs.…”
Section: Resultssupporting
confidence: 92%
“…Even though the intuition is that the IGEs increased slightly over the period, the Wald statistic was not significant, indicating that all 8‐year‐point estimates were identical. This finding aligns with prior studies showing that intergenerational income mobility in the USA has not changed, other than a slight increase in recent decades (Chetty, Hendren, Kline, Saez, & Turner, ; Hertz, ; Lee & Solon, ; Mayer & Lopoo, ). Nonetheless, this finding is inconsistent with other studies which provide evidence that the trends in mobility have declined (Aaronson & Mazumder, ; Bloome & Western, ).…”
Section: Resultssupporting
confidence: 91%
“…1 reveals a cohort trend in China that is distinct from that in the United States. Confirming earlier research using either income-based ( 8 ) or occupation-based ranks ( 9 ), we find a relatively stable rank–rank correlation in the United States. Our estimates, around 0.3, closely resemble those in an earlier study by Hout ( 11 ) using occupational socioeconomic index ( Fig.…”
Section: Resultssupporting
confidence: 88%
