Reapplication and extension: intergenerational mobility in the United States

This paper replicates and extends Solon's [Am, Econ. Rev. 82 (1992) 393-408.] article "Intergenerational Income Mobility in the United States". The results confirm previous findings about the degree of transmission in earnings and consumption from fathers to sons. The correlation between fathers' and sons' earnings lies in the neighborhood of 0.4 and the correlation in consumption is larger. Using the sons' outcomes when they are 5 years older does not alter the estimates of the correlation in earnings, but the estimates of the correlation in consumption are smaller and closer to the estimates of the correlation in earnings. The estimates that use consumption data are sensitive to whether sons' 1984 or 1989 outcomes are used and to whether one adjusts for family size and structure. (C) 2000 Elsevier Science B.V. All rights reserved. JEL classification: J1.