Economic Affairs
  • Year: 2011
  • Volume: 56
  • Issue: 4

Poverty Trap: the Missing part of the Intergenerational Mobility Estimates

  • Author:
  • Murat Anil Mercan
  • Total Page Count: 4
  • Page Number: 381 to 384

Gebze Institute of Technology, Cayirova Kampusu B Blok: 111 Cayýrova/Gebze, Kocaeli, E-mail: mamercan@gyte.edu.tr.

Online published on 5 April, 2012.

Abstract

The intergenerational mobility literature, which investigates the income relationship between generations, assumes there is a strong tendency for regression to the mean. To test this tendency the first time, we used several different probit models. The results suggest that sons will have zero earnings in a year is strongly correlated with his father's income. Our marginal probit estimates vary between-0.05 and-0.10, which mean that a one percent increase in the fathers income causes up to a ten percent decline on the probability of the son having zero annual earnings at some point in his lifetime.

Keywords

Generation, Probability