INTERGENERATIONAL INCOME MOBILITY ACROSS THREE GENERATIONS: THE CASE OF TAIWAN

This research analyzes intergenerational income mobility over three generations in Taiwan by estimating intergenerational income elasticity (IGE). Results indicate that IGE between fathers and sons is 0.349, and IGE between fathers and grandsons is 0.139. Fathers’ death during grandsons’ early ages does not affect IGE between them, and the independent effect of fathers’ income on grandsons’ income is weak. Roughly, 65% of IGE between fathers and grandsons is explained by sons’ couples’ income. Quantile results show that IGE between fathers and grandsons is stronger at upper tail of fathers’ income distribution, and it is especially strong for extremely rich grandsons.