Abstract
How economic development affects intergenerational earnings elasticity is not well-documented. In this paper, we estimate intergenerational earnings elasticities between fathers and sons in two periods. In the current period, 2005â2010, Taiwan is already a developed economy with slower economic growth. We apply the two-sample approach developed by BjA¶rklund and JA¤ntti (1997) and find that intergenerational earnings elasticity is around 0.4â0.5 in this period. In the earlier period, 1990â1994, Taiwan was still a developing economy with fast economic growth. We mimic the BjA¶rklund-JA¤ntti two-sample approach and use average earnings by occupation as a proxy for fathersâ earnings. To quantify potential bias, we apply the same method to the 2005â2010 data. Our proxy method yields similar estimates in both the early 1990s and late 2000s. These results suggest stable intergenerational transmission of economic status in Taiwan, despite its rapid economic development.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
