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Intergenerational mobility: New evidence from consumption data
Author(s) -
Bruze Gustaf
Publication year - 2018
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.2626
Subject(s) - consumption smoothing , danish , consumption (sociology) , persistence (discontinuity) , economics , earnings , demographic economics , population , income elasticity of demand , labour economics , demography , business cycle , macroeconomics , sociology , social science , linguistics , philosophy , geotechnical engineering , accounting , engineering
Summary The intergenerational persistence of consumption describes the extent to which children inherit the living standards of their parents. Evidence on this parameter is scarce due to limited data on the joint consumption of parents and children. This paper identifies parents who participated in the Danish Expenditure Survey, links them to their children through population‐wide Danish registries, and estimates the intergenerational elasticity of consumption in Denmark. The results suggest that, consistent with intergenerational consumption smoothing, the persistence of consumption across generations is higher than the persistence of earnings and income.