Gender Differences in Intergenerational Income Mobility in Brazil

Abstract

Income inequality in Brazil is high and persistent, explained at least in part by low intergenerational income mobility. Despite the increasing female labor participation, most of the studies consider only father’s income to analyze intergenerational mobility. This chapter aims to analyze the role of mothers in intergenerational income mobility and the differences in mobility patterns between daughters and sons in Brazil. We use information from social mobility supplement of 2014 National Household Sample Survey to estimate intergenerational elasticity of labor income. The results show that the relation between mothers’ and children’s income is almost as high as that of fathers, especially for daughters. Mobility patterns’ analysis reveals no significant differences between daughters and sons. However, gender income inequalities are more pronounced for women from poor families. As returns to education are increasing, the educational advantage of female over male workers seems to offset gender gap for those of richer families. Moreover, the educational mobility between generations was higher for daughters than for sons. Despite that, daughters did not experience greater income mobility than sons. These results suggest that equalizing educational opportunities is important to promote intergenerational income mobility, although not sufficient. Nowadays, women in Brazil are more educated than men, but there exist social barriers to achieve equal payment for similar levels of schooling. Then, there is still room for gendered actions and policies related to improvements in labor market conditions to narrow the gender wage gap between men and women and between workers from richer and poorer families.