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Intergenerational Social Mobility in European OECD Countries
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Paper
Intergenerational Social Mobility in European OECD Countries
2009
Overview
This paper breaks new ground by providing comparable estimates of intergenerational wage and education
persistence across 14 European OECD countries based on a new micro data from Eurostat. A further
novelty is that it examines the potential role of public policies and labour and product market institutions in
explaining observed differences in intergenerational wage mobility across countries. The empirical
estimates show that intergenerational wage persistence is relatively high in southern European countries, as
well as in the United Kingdom. Likewise, intergenerational persistence in education is relatively high both
in southern European countries and in Luxembourg and Ireland. By contrast, both persistence in wages and
education tends to be lower in Nordic countries. In addition, empirical results show that education is one
important driver of intergenerational wage persistence across European countries. There is a positive crosscountry
correlation between intergenerational wage mobility and redistributive policies, as well as a
positive correlation between wage-setting institutions that compress the wage distribution and mobility.
Publisher
OECD Publishing
