Is America becoming more equal for children? Changes in the intergenerational transmission of low- and high-income status

This study investigates how the intergenerational transmission of low- and high-income status has changed over time among sons. Comparing two cohorts (sons who were 11-15 years old in 1969 vs. sons who were at the same age in 1979) from the Panel Study of Income Dynamics, this paper shows that the transmission of high-income status significantly increased while the transmission of low-income status remained stable. These results suggest that it has now become easier for high-income sons to maintain their economically advantaged status than in the past. In contrast, low-income sons' chances of escaping from their economic disadvantage have not increased to the same extent. This study also has a methodological implication: we need more attention to the non-linearity issue when studying changes in intergenerational economic mobility. Findings from this study demonstrate the need for public investments to promote intergenerational mobility in order to prevent economic polarization across income groups.