Title:Intergenerational Top Income Mobility in Taiwan
Speaker: O-Chia Chuang
Abstract:In this paper, we use income tax data in Taiwan to investigate the intergenerational income mobility, i.e. how do parents transmit the income to their children? Especially, we focus on the income mobility of the richest 10% to 0.1% of parents. In Taiwan parents sometimes value their sons more than daughters, therefore, we treat father-son and father-daughter income mobility separately. Since intergenerational income elasticity is nonlinear in the right tail of fathers' income, we also adopt a nonparametric approach rather than the traditional linear model approach in which the intergenerational income elasticity is assumed to be a positive constant. We find that contrary to the literature of intergenerational (mean) income mobility, the intergenerational top income dependence of father-son is always higher than that of father-daughter. Furthermore, conditional on fathers' income ranking, sons' income first order stochastically dominates (FSD) daughters' income.
AboutO-Chia Chuang: He is an Assistant Professor in the Department of Mathematical Economics & Finance at the Economics and Management School of Wuhan University. He holds a Bachelor’s degrees in Mathematics, a Master’s degree in Economics, and a Ph.D. in Finance from National Taiwan University. His main research interest is in Financial Econometrics and Risk theory.
Date: May, 18,2016
Location:Room 608, Academic Hall, CUFE