Structure and Extent of Intergenerational Income Mobility in Germany

The paper examines the structure and the extent of intergenerational income mobility in Germany. Using data from the German Socio-economic Panel it is possible to look at both, father-son and father-daughter pairs. In the present case the intergenerational income elasticity is 0.26 for father-son pairs and 0.36 for father-daughter pairs. A more detailed analysis is carried out, applying a quantile regression approach. In a third step I estimate the transition matrices of sons. Although there is some persistence at both ends of the income distribution, the results show a high level of intergenerational mobility in Germany.