Intergenerational earnings mobility in Taiwan

This study aims to estimate the extent of intergenerational mobility of earnings in Taiwan. The intergenerationalelasticity of a child's earnings with respect to its parent's earnings is estimated by using household micro-data fromthe Panel Study of Family Dynamics (PSFD) in Taiwan. We apply an estimation method using the predictedearnings of parents. The estimation result suggests that the elasticity for sons is 0.25-0.3 and that for daughters isroughly 0.4. The estimate looks intermediate or moderately low from an international perspective, suggesting thatTaiwan is a moderately mobile society.