Italian Ministry of Economy and Finance
Via XX Settembre 97
Institutional Affiliation: Italian Ministry of Economy and Finance
NBER Working Papers and Publications
|April 2019||"And Yet It Moves": Intergenerational Mobility in Italy|
with Alberto Polo, Giovanni L. Violante: w25732
We link administrative data on tax returns across two generations of Italians to study the degree of intergenerational mobility. We estimate that a child with parental income below the median is expected to belong to the 44th percentile of its own income distribution as an adult, and the probability of moving from the bottom to the top quintile of the income distribution within a generation is 0.10. The rank-rank correlation is 0.25, and rank persistence at the top is significantly higher than elsewhere in the income distribution. Upward mobility is higher for sons, first-born children, children of self-employed parents, and for those who migrate once adults. The data reveal large variation in child outcomes conditional on parental income rank. Part of this variation is explained by the l...