October 2019

IZA DP No. 12694: Evidence on Intergenerational Income Transmission Using Complete Dutch Population Data

published in: Economics Letters, 2020, 189, 108996

We estimate the intergenerational elasticity (IGE) of income for the Netherlands using complete population data for around 177,000 28-year olds. We find that IGEs are much lower when actual individual income data are used rather than proxies or aggregates for income. Though low, daughters' IGEs are higher than sons' indicating lower income mobility for women.