The aim of this paper is to explore nonlinearity in intergenerational income transmission. We use a set of occupational tables in different countries to test nonlinearity. We also empirically address how policy variables can affect nonlinearity. Our findings suggest that concavity is supported in those societies with less credit constraints, but with more poverty and income inequality; education has an increasing effect on convexity.
Berrittella, M., Dardanoni, V. (2016). Nonlinearity in intergenerational income transmission: A cross-country analysis. ECONOMIC ANALYSIS AND POLICY, 52, 1-10 [10.1016/j.eap.2016.06.005].
Nonlinearity in intergenerational income transmission: A cross-country analysis
BERRITTELLA, Maria
;DARDANONI, Valentino
2016-01-01
Abstract
The aim of this paper is to explore nonlinearity in intergenerational income transmission. We use a set of occupational tables in different countries to test nonlinearity. We also empirically address how policy variables can affect nonlinearity. Our findings suggest that concavity is supported in those societies with less credit constraints, but with more poverty and income inequality; education has an increasing effect on convexity.
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