Intergenerational mobility in the Netherlands: models, outcomes and trends

Abstract

AbstractWe reconstruct the genealogical tree of all individuals ever appearing in Dutch municipalities records starting in 1995. Combining microdata from tax authorities with education records we compute a measure of permanent income as well as education. We estimate the degree of intergenerational persistence in education and income in the population and across time, showing that it is higher than what previous estimates would suggest, albeit it appears to be decreasing. Finally, exploiting information on the education of grandparents, we estimate a model of intergenerational mobility in which endowments are transmitted through a latent factor. Estimates suggest an even higher persistence.