Intergenerational Earnings Mobility in Mexico

Nancy Aireth Daza Báez

Documento de trabajo CEEY no. 03 / 2021

Intergenerational mobility is a growing concern among academics and policymakers. However, due to the absence of information on earnings for successive generations, little evidence is available for developing countries. This paper adds to this scarce body of evidence by studying intergenerational mobility of earnings for Mexico. The key results show less mobility than previously suggested. On average, 70.9 % of the relative difference in father’s earnings is transmitted to their children. Moreover, a 10 percentile point increase in the father’s earnings rank is associated with a 3.15 percentile point increase in the son’s earnings rank. At the regional level, strong intergenerational persistence is found in the South; whilst the North presents the highest intergenerational earnings mobility.