Intergenerational earnings and income mobility in Spain

Abstract

This paper contributes to the large number of studies on intergenerational earnings and income mobility by providing new evidence for Spain. Since there are no Spanish surveys covering long-term information on both children and their fathers' income or earnings, we deal with this selection problem using the two-sample two-stage least squares estimator. We find that intergenerational mobility in Spain is similar to France, lower than in the Nordic countries and Britain and higher than in Italy and the United States. Furthermore, we use the Chadwick and Solon (2002) approach to explore the intergenerational mobility in the case of daughters overcoming employment selection, and we find similar results by gender