Intergenerational Earnings Mobility in South Korea: A Gender Comparison Open Access

Abstract

This study decomposes the transmission effects of earnings based on gender in South Korea from 1998 to 2007. Using data from the Korean Labor and Income Panel Study (KLIPS), a dataset of 2,048 households are extracted based on parent-child pairs living together in 1998. Using the Solon's model (model 1) and a variation (model 2), this study identifies how each parent's earnings and education levels separately transmit to their children's earnings and education levels. The findings are as follow: (1) Fathers influence sons' earnings directly through their own earnings and education levels. (2) Fathers' earnings or education levels do not directly impact daughters' earnings. (3) Mothers' education levels positively impact both sons' earnings and daughters' earnings. (4) Mothers' earnings do not impact sons' earnings but do positively impact daughters' earnings.

Table of Contents

I.Introduction ...................... 1

II.Literature Review .............. 3

III.Data .............................. 5

IV.Empirical Strategy ............ 7

i. Model 1 ................... 7

ii. Model 2 ................. 10

V.Results ........................... 11

i. Economic Status ....... 11

ii. Earnings ................. 13

iii. Education ............... 17

VI.Discussion ...................... 18

VII.Appendix ....................... 21

VIII.References ................... 24

List of Figures and Tables

Figure1: Great Gatsby Curve ............................................................ 2

Figure 2: Relationship between variables ........................................... 10

Table 1: Summary statistics of parents in 1998 .................................... 6

Table 2: Summary statistics of children in 2007 ................................... 6

Table 3: Economic status rates for family members ............................. 12

Table 4: Labor force participation and type of work for family members ...12

Table 5: Type of workplace for family members....................................12

Table 6: Elasticity measurements for father-child pairs in model 1 .......... 13

Table 7: Elasticity measurements for mother-child pairs in model 1 ........ 14

Table 8: Single year elasticity measures using IV estimation ................. 15

Table 9: Elasticity measures for father-child pairs in model 2 ................ 16

Table 10: Elasticity measures for mother-child pairs in model 2 ............. 16

Table 11: Regression coefficients for years of education......................... 17

Table 12: Effect of parents' education level on children's education level .. 18

Table 13: Regression results for father-son pairs (model 2) ................... 21

Table 14: Regression results for father-daughter pairs (model 2) ............ 21

Table 15: Regression results for mother-daughter pairs (model 2) ........... 22

Table 16: Regression results for mother-son pairs (model 2)................... 23

About this Honors Thesis

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School	Emory College
Department	Economics and Mathematics
Degree	BA
Submission	Honors Thesis
Language	English
Research Field	Economics, Labor Economics, General
Keyword	South Korea Labor Economics Intergenerational Mobility
Committee Chair / Thesis Advisor	Maasoumi, Esfandiar, Emory University
Committee Members	Borthwick, David, Emory University Choi, Bumyong , Emory University

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