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http://dx.doi.org/10.7465/jkdi.2014.25.4.715

Intergenerational economic mobility in Korea using a quantile regression analysis  

Richey, Jeremiah (School of Economics and Trade, Kyungpook National University)
Jeong, Kiho (School of Economics and Trade, Kyungpook National University)
Publication Information
Journal of the Korean Data and Information Science Society / v.25, no.4, 2014 , pp. 715-725 More about this Journal
Abstract
This study uses a quantile regression analysis to investigate intergenerational economic mobility in Korea. The analysis is based on data from the 1st through 11th waves of the Korean Labor and Income Panel Study (KLIPS) conducted from 1998-2008. The household nature of the data allows us to link parents' incomes to children's incomes at different points in time. Using a quantile regression analysis instead of mean one reveals that the effect of fathers' earnings are different across the conditional distribution of sons' earnings, particularly being larger on the upper quantile than on the lower quantile. After controlling effect of sons' college education by including a dummy variable for the degree, however, the pattern among quantile effects for fathers' earnings is no longer clear. Instead a new pattern emerges that education has a much larger effect on the upper quantiles than on the lower ones. Using nonparametric estimates of conditional density curves based on the quantile regression results, we derive some interesting features in graphical forms, which are not obvious in numerical analysis.
Keywords
Instrument variable; intergenerational economic mobility; Korean Labor and Income Panel Study; quantile regression analysis;
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Times Cited By KSCI : 4  (Citation Analysis)
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