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Title page
Contents
Abstract 3
1. Introduction 4
2. Data 6
3. Results 7
3.1. Population average estimates 8
3.2. Nonlinearity and the role of education and employment 11
3.3. The "residual" component and the role of capital income 15
3.4. Transfer income and nonlinearities 18
4. Discussion and conclusion 20
References 22
Appendix 32
A. Additional results (for online publication only) 32
B. Data construction (for online publication only) 48
C. Nonlinear mediation analysis (for online publication only) 52
Figure 1. Local associations between children's and parents' market income 28
Figure 2. Child education and employment by parental market income 29
Figure 3. Child market income and IGEs by parental market income 30
Figure 4. The role of transfer income in the IGE 31
Figure A.1. Robustness to income threshold: Nonlinear IGEs and decomposition 35
Figure A.2. Robustness to timing of children's income measurement - child age 34-37: Nonlinear IGEs and decomposition 36
Figure A.3. Robustness to timing of parents' income measurement: Nonlinear IGEs and decomposition 37
Figure A.4. Decomposition of the nonlinear IGE by education and employment - narrower bandwidth 38
Figure A.5. Comparing variation in estimated income mobility within Denmark to variation found across non-Western countries on average 39
Figure A.6. Sequential decomposition of the nonlinear IGE by education and employment 40
Figure A.7. Nonlinear decomposition of mobility using rank-rank and upwards mobility estimates 41
Figure A.8. Value of stocks and bonds by child age and parental income 42
Figure A.9. The role of transfer income in the IGE 43
Figure A.10. Amount and share of children with incomes 〈$1 by parents' income 44
Figure A.11. Decomposition of the nonlinear IGE by education and employment - student exclusion and employment definition 45
Figure A.12. Decomposition of the nonlinear role of child education and employment (δ) for the market income IGE into the association between parental income... 46
Figure A.13. Decomposition of the nonlinear role of child education and employment (δ) for the gross income IGE into the association between parental income... 47
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