Intergenerational Income Mobility in France: A Comparative and Geographic Analysis

Gustave Kenedi (1) , Louis Sirugue (2, 3)

1 Institut d'Études Politiques [IEP] - Paris
2 PSE - Paris School of Economics
3 PJSE - Paris Jourdan Sciences Economiques

We provide new estimates of intergenerational income mobility in France for children born in the 1970s using rich administrative data. Since parents' incomes are not observed, we employ a two-sample two-stage least squares estimation. We show, using the Panel Study of Income Dynamics, that this method slightly underestimates rank-based measures of intergenerational persistence. Our results suggest France is characterized by a strong persistence relative to other developed countries. 9.7% of children born to parents in the bottom 20% reach the top 20% in adulthood, four times less than children from the top 20%. We uncover substantial spatial variations in intergenerational mobility across departments, and a positive relationship between geographic mobility and intergenerational upward mobility. The expected income rank of individuals from the bottom of the parent income distribution who moved towards high-income departments is around the same as the expected income rank of individuals from the 75 th percentile who stayed in their childhood department.

Mots clés: Intergenerational mobility; Geographic mobility; Spatial variations

Domaines: Economies et finances

Gustave Kenedi, Louis Sirugue. Intergenerational Income Mobility in France: A Comparative and Geographic Analysis. 2023. ⟨halshs-04423899⟩