Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283244 
Year of Publication: 
2024
Series/Report no.: 
DIW Discussion Papers No. 2068
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
This study provides the first absolute income mobility estimates for postwar Germany. Using various micro data sources, we uncover a steep decline in absolute mobility rates from 81 percent to 59 percent for children's birth cohorts 1962 through 1988. This trend is robust across different ages, family sizes, measurement methods, copulas, and data sources. Across the parental income distribution, we find that children from middle class families experienced the largest percentage point drop in absolute income mobility (-31pp). Our counterfactual analysis shows that lower economic growth rates and higher income inequality contributed similarly to these trends.
Subjects: 
Absolute mobility
Intergenerational mobility
Income distributions
Consumption
Inequality
JEL: 
D31
H0
J62
Document Type: 
Working Paper

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