Intergenerational Earnings Mobility in Singapore and the United States

• Main Authors: NG, Irene Y. H., SHEN, Xiaoyi, HO, Kong Weng
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: Intergenerational earnings mobility; Singapore; United States; Asian Studies; Economics; Public Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/1631; https://ink.library.smu.edu.sg/context/soe_research/article/2630/viewcontent/2009_IntergenerationalEarningsMobilitySingaporeUS_postprint.pdf
• Institution: Singapore Management University

This study compared intergenerational earnings mobility in Singapore and the United States by replicating the sample criteria in the Singapore National Youth Survey on the U.S. Panel Study of Income Dynamics. The mean estimated earnings elasticities are almost identical: 0.26 in Singapore and 0.28 in the United States. Transformed to 0.44 and 0.47 respectively to reflect permanent status, mobility in the two countries is moderately low compared internationally. The finding of similar mobility is not surprising given that the two countries have similar economic realities, welfare systems, education regimes, and labor structures. Policy makers face the daunting challenge of overcoming immobility and inequality while maintaining global competitiveness.