Patterns of persistence: Intergenerational mobility and education in South Africa (updated)

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dc.contributor.author Finn, Arden
dc.contributor.author Leibbrandt, Murray
dc.contributor.author Ranchhod, Vimal
dc.date.accessioned 2016-09-15T14:36:15Z
dc.date.available 2016-09-15T14:36:15Z
dc.date.issued 2017-03
dc.identifier.citation Finn, A., Leibbrandt, M., Ranchhod, V. (2017). Patterns of persistence: Intergenerational mobility and education in South Africa. Version 2. Cape Town: SALDRU, UCT. (SALDRU Working Paper Number 175/ NIDS Discussion Paper 2016/2).
dc.identifier.isbn 978-1-928281-36-8
dc.identifier.uri http://hdl.handle.net/11090/830
dc.description.abstract How should the correlation between the earnings of parents and children in South Africa be calculated in the presence of high unemployment, and what is the role of education in determining this relationship? We use the first four waves of the National Income Dynamics Study (NIDS) for 2008 to 2014/15, and the 1993 Project for Statistics on Living Standards and Development (PSLSD) to investigate the shape of the association between parental and child earnings across the earnings distribution, and find that the correlation is strongest at the ends of the distribution. We correct for possible biases that arise from co‐resident parent‐child pairs, and from selection into labour market participation in South Africa’s high‐unemployment society. We find that correcting for selection into employment increases the intergenerational elasticity of earnings by approximately 10 per cent. We unpack the role of education in determining the association of intergenerational earnings and find that the impact is strongest at the bottom of the earnings distribution, and that education accounts for approximately 40 per cent of the total intergenerational earnings elasticity. en_US
dc.description.sponsorship Arden Finn: fnnard001@myuct.ac.za, Doctoral student and researcher at the Southern Africa Labour and Development Research Unit, University of Cape Town. Murray Leibbrandt: murray.leibbrandt@uct.ac.za, Professor of economics and director of SALDRU at the University of Cape Town. Vimal Ranchhod: vimal.ranchhod@uct.ac.za, Associate professor in SALDRU at the University of Cape Town. Acknowledgements: All authors acknowledge financial support from the Programme to Support Pro-poor Policy Development in the Department of Planning Monitoring and Evaluation. Arden Finn acknowledges the National Research Foundation for financial support for his doctoral work through the Chair in Poverty and Inequality Research. Murray Leibbrandt acknowledges the Research Chairs Initiative of the Department of Science and Technology and National Research Foundation for funding his work as the Chair in Poverty and Inequality Research. Vimal Ranchhod acknowledges support from the Research Chairs Initiative of the Department of Science and Technology and the National Research Foundation. en_US
dc.language.iso en en_US
dc.relation.ispartofseries Saldru Working Paper;175
dc.subject Unemployment en_US
dc.subject Education en_US
dc.subject National Income Dynamics Study (NIDS) en_US
dc.subject South Africa en_US
dc.title Patterns of persistence: Intergenerational mobility and education in South Africa (updated) en_US
dc.type Working Paper en_US


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