Intergenerational Income Mobility: Evidence from Pakistan

Abstract

Intergenerational transmissions have significant economic implications not only for a family but for society as a whole. The concept of intergenerational mobility has been constantly under discussion among social scientists since 1960 to find out the ways through which socio-economic status of parents gets transmitted to their offspring. The study attempts to measure intergenerational income mobility in Pakistan. The paper uses field survey data of 2000 households, 1000 each from two generations to calculate intergenerational income mobility. The estimation results indicate that intergenerational mobility is low in Pakistan, which proves the fact that children from different income groups do not have equal opportunities to improve their socio-economic status. The continuation of socio-economic status across generations causes income inequality. The study will enable the government for future planning.