How far does the apple fall from the tree?

The research, by ANU economist Dr Andrew Leigh, estimates the degree of intergenerational mobility (also known as ‘social mobility’) by calculating the relationship between the earnings of fathers and their sons.

Using four surveys, covering over 5000 sons born between 1910 and 1979, the research makes the first direct comparison of social mobility in Australia and the United States, and finds a greater degree of social mobility in Australia.

“It is easier to move to rags to riches in Australia than it is in the United States”, said Dr Leigh. “Particularly for those who begin in poverty, Australia offers a greater chance of rising up the income ladder.”

“Intergenerational mobility in Australia is probably similar to the United Kingdom. However, Australia is most likely not as socially mobile as the Scandinavian countries – where there is very little relationship between parental and child earnings.”

Due to lower labour force participation rates by women in previous generations, the research focused only on fathers and sons. It found that the elasticity of sons’ wages with respect to fathers’ wages is around 0.2-0.3; meaning that for every 10 percent increase in a father’s earnings, his son’s earnings would be expected to rise by 2-3 percent. The intergenerational elasticity for the United States is around 0.4-0.6.

The study also concluded that intergenerational mobility in Australia seems to have stayed stable over the past forty years.

“On one view, the absence of any significant rise in intergenerational mobility might be regarded as surprising. Increases in health care coverage and expansions in educational attainment are among the policy reforms that might have been expected to increase intergenerational mobility.”, said Dr Leigh.

“Yet there were also trends in the opposite direction, including the abolition of inheritance taxes, the rise in jobless households, and the rise in inequality.

“So perhaps it is not too surprising that family background matters as much today as it did in the 1960s.”

The paper, Intergenerational Mobility in Australia, was published in the latest edition of the B.E. Journal of Economic Analysis & Policy.

Source: Australian National University

CSIRO scientist discovers natural 'invisible' gold
The search for these natural but 'invisible' nanoparticles is important. If they can be proved to exist, the knowledge will help give us a deeper understanding of how gold can be transported and deposited by geological processes, and therefore help explorers to find new gold deposits in Australia.
Older Australians at risk of sun-related skin cancer death
A new Western Australian study has revealed the mortality from non-melanoma skin cancer (NMSC), commonly considered less dangerous than melanoma, is affecting older Australians at a worrying rate.
Rett syndrome research reveals high fracture risk
Researchers at Perth’s Telethon Institute for Child Health Research have found that girls and young women with Rett syndrome are nearly four times more likely to suffer a fracture.
Globe Talk: Bets are on for mobile TV
An alliance between some of the biggest names in information technology is always bound to pique the interest of industry analysts, and the latest collaborative effort between titans is no exception. Still, there is concern among some analysts that too many hopes are being put into the future of mobile entertainment, and perhaps that there simply aren't enough people out there who want to watch television while on the go.
France Telecom And Inmarsat Test Mobile Broadband Solution For End Year Launch
France Telecom Mobile Satellite Communications is Inmarsat's exclusive partner in the development of the upcoming broadband mobile satellite Internet solution, the Inmarsat BGAN (Broadband Global Area Network).
VIVO and Lucent Technologies to launch super-fast mobile data network trial in São Paulo and Rio de Janeiro
3G CDMA2000 1xEV-DO Network to provide business users with data speeds that are more than 40 times faster than wireline dial-up connections

Rio de Janeiro, Brazil - VIVO and Lucent Technologies (NYSE: LU) today announced plans to launch a super-fast mobile data network trial in Rio de Janeiro and São Paulo. This third-generation (3G) CDMA2000® 1xEV-DO trial network, supplied by Lucent, will enable VIVO to provide select business customers with secure mobile access to corporate applications such as e-mail and intranets at data speeds of up to 2.4 Megabits per second (Mbps) - more than 40 times faster than wireline dial-up connections.
Scientists uncover new dolphin species in Australian waters
(PhysOrg.com) -- Marine mammal experts have uncovered a new species of dolphin in Australian waters, challenging existing knowledge about bottlenose dolphin classifications and highlighting the country's marine biodiversity.
Memory mission explores new territory in neuroscience
Astrophysicists peer into the far corners of deep space for dark matter, but for neuroscientists at the Queensland Brain Institute (QBI) exploring the unknown is much closer to home.

How far does the apple fall from the tree?

Related stories:

News discussion: