Intergenerational income mobility: Gender, Partnerships and Poverty in the UK

Lead Research Organisation: University College London
Department Name: Social Science

Abstract

This important new work looks to fill an 'evidence deficit' within the literature on intergenerational economic mobility by investigating intergenerational income mobility for two groups who are often overlooked in existing research: women and the poorest in society. To do this, the research will make two methodological advancements to previous work: First, moving to focus on the family unit in the second generation and total family resources rather than individual labour market earnings and second, looking across adulthood to observe partnership, fertility and poverty dynamics rather than a point-in-time static view of these important factors.
Specifically it will ask four research questions:
1) What is the relationship between family incomes of parents in childhood and family incomes of daughters throughout adulthood?
The majority of previous studies of intergenerational income mobility have focused on the relationship between parents' income in childhood and sons' prime-age labour market earnings. Women have therefore been consistently disregarded due to difficulties observing prime-age labour market earnings for women. This is because women often exit the labour market for fertility reasons, and the timing of this exit and the duration of the spell out of the labour market are related to both parental childhood income and current labour market earnings. This means that previous studies that have focused on employed women only are not representative of the entire population of women. By combining our two advancements, considering total family income and looking across adulthood for women, we can minimise these issues. The life course approach enables us to observe average resources across a long window of time, dealing with issues of temporary labour market withdrawal, while the use of total family income gives the most complete picture of resources available to the family unit including partner's earnings and income from other sources, including benefits.
2) What role do partnerships and assortative mating play in this process across the life course?
The shift to focusing on the whole family unit emphasises the importance of partnerships including when they occur and breakdown and who people partner with in terms of education and current labour market earnings. Previous research on intergenerational income mobility in the UK has suggested an important role for who people partner with but has been limited to only focusing on those in partnerships. This work will advance our understanding of partnership dynamics by looking across adulthood at both those in partnerships and at the importance of family breakdown and lone parenthood in this relationship.
3) What is the extent of intergenerational poverty in the UK, and does this persist through adulthood?
The previous focus on individuals' labour market earnings has often neglected to consider intergenerational income mobility for the poorest in society: those without labour market earnings for lengthy periods of time who rely on other income from transfers and benefits. The shift in focus to total family resources and the life course approach will allow us to assess whether those who grew up in poor households are more likely to experience persistent poverty themselves in adulthood.
4) What is the role of early skills, education and labour market experiences, including job tenure and progression, in driving these newly estimated relationships?
Finally our proposed work will consider the potential mechanisms for these new estimates of intergenerational income mobility for women and the poorest in society for the first time and expand our understanding of potential mechanisms for men. While our previous work showed the importance of early skills and education in transmitting inequality across generations for males, this new work will also consider the role of labour market experiences including job tenure and promotions as part of the process.

Planned Impact

Intergenerational mobility is a key dimension of social policy research following new findings concerning intergenerational economic mobility over the last decade. This research has led to the improvement of intergenerational mobility becoming the key goal of the UK government's social policy strategy. This project will achieve a step advance in our understanding of intergenerational mobility in the UK, providing the first estimates for two groups that to date we know little about: women and the poorest in society. This will be of substantial benefit to policy makers in government as it seeks to improve equality of opportunity in Britain for the whole population, rather than just working males. We therefore would expect the work to be of significant interest to the Social Mobility Commission. We would also anticipate communicating our findings to officials at the Department for Education, the Treasury and Cabinet Office. The findings would also be of considerable interest to non-government organizations such as the Sutton Trust, the Social Mobility Foundation and the Intergenerational Foundation.

We propose to produce a minimum of three academic outputs and create six new datasets as part of this project. The three academic outputs would be peer-reviewed papers targeted at top journals in economics, social policy and demography. The new data resources would provide new fertility history files and enhance existing work and partnership histories for the two national birth cohort studies . We would work with colleagues in the Centre for Longitudinal Studies (CLS) within Macmillan's department to deposit these new datasets with the UK Data Service for other researchers to use. These resources will benefit researchers interested in demography and economics and encourage future use of the cohort studies.

The Department of Social Science at the UCL Institute of Education and Macmillan and Gregg's affiliated research centres including the Centre for Market and Public Organisation (CMPO) at University of Bristol have outstanding reputations for high quality research, dissemination and for fostering wider impact. The Department is home to the Centre for Longitudinal Studies (CLS), a successful ESRC Resource Centre, and benefits from an outstanding communications team who have vast experience in engaging with both academic and non-academic beneficiaries. It also has a successful working paper series that will be used to publish early research from the project.

We will stage a major conference toward the end of the project to address a broad audience. This will be in Westminster and we will seek to invite other major researchers on family structure, poverty and children's life chances from the UK and abroad and policy makers and practitioners. This will provide a key opportunity both for influencing policy makers and getting the research out into the public domain. Attendance will be drawn from the Commission, Cabinet Office, government departments and a range on non-government organisations with interests in mobility and the impact of poverty on life chances. This will include the Sutton Trust, Child Poverty Action Group and Joseph Rowntree Foundation. We also aim to co-host an ESRC Festival of Social Sciences event with colleagues at CLS, engaging with the general public including school children and students.

This project will exploit both Macmillan and Gregg's extensive links to, and experience of working with, policy makers and practitioners to ensure impact (see also the pathways to impact and CVs attached). Both have proven experience in engaging with different audiences, producing articles for the ESRCs 'Britain in....' series and 'Society Now' magazine. We will aim to contribute further articles to these publications and produce infographics with the help of an experienced designer. We will write blogs for CMPO and IOE and use Macmillan's twitter account to publish the release of new working papers and blogs.

Publications

10 25 50
 
Description • Previous estimates of intergenerational mobility have typically focused on men due to issues of differential selectivity into the labour force for women by family background. This is particularly an issue as intergenerational mobility is typically estimated during prime childbearing age.

• We use the wealth of information available across working ages in a longitudinal cohort study to provide working age estimates of intergenerational mobility for women.

• We show that women are more mobile than men in terms of earnings but more similar in terms of total family income mobility.

• This is driven, in part, by women from more affluent backgrounds with a weaker labour market attachment partnering with more highly educated men. Partnership formation drives persistence for both sexes, but in different ways. Men from well-off backgrounds are more likely to be in couples compared to those from poorer backgrounds, whereas there is a more important association between family background of women and spouses' earnings, compared to men. For women, dual-working households are more mobile, while for men the opposite is true.

• Education has been shown to be an important mechanism in the transmission of incomes across generations for men, accounting for around 50% of persistence in incomes across generations. We use our longitudinal estimates of intergenerational earnings mobility from 30 to 46 to explore why women are more mobile than men in terms of earnings mobility, with flat lifecycle profiles when adjusting for participation.

• We find that women are more mobile than men because both the role of education, and the role of family background conditional on education, are stable across the life course for women. In contrast, inequalities in persistence widen for men, both between and within education levels from 30 to 46.

• This is driven by stronger returns to degrees and early labour market participation for men relative to women, particularly at later ages.

• When comparing those with the same education, persistence in incomes are stronger for men, indicating that men from richer backgrounds have more success in the labour market regardless of their education and this is not purely driven by access to top jobs. Women from richer backgrounds do not get the same labour market advantage, conditional on education.

• Overall, education is a more important driver of immobility for women than it is for men, accounting for over 70% of the transmission across generations.

• Finally, we explore differences in life chances for those from the poorest backgrounds across England using new administrative linked-data, and consider gender differences in these experiences.

• Our findings show large differences in life chances of those from low income families across England, with areas of high mobility also offering the highest chances of reaching the top of the income distribution for these families. Interestingly, the findings at the bottom of the income distribution are different from the overall picture. We find that women from the most disadvantaged families are less mobile than men from the most disadvantage families.

• There are large differences across the country -for men we see a pattern of lower mobility areas around northern cities, including Newcastle, Manchester, Bradford and Sheffield, while the higher mobility areas are around southern areas including outer London and surrounding home counties.

• For women, the least mobile areas are more spread including broad areas of Yorkshire including Hull, East Midlands such as Nottingham, and the North East again including Middlesbrough, while the most mobile areas include inner London boroughs, and some outer London.

• We find that education plays an important role in explaining geographical variation - more important than previous literature has suggested - but cannot account for the majority of the differences across areas. Consistent with findings at the national level, education plays a more important role in explaining immobility for women, relative to men.
Exploitation Route These findings have important implications for education policy, 'levelling up' strategy, and policies relating to women's labour force participation. The importance of education in driving intergenerational persistence for women is particularly strong, both at a national level and across different geographical settings. Ensuring that women from the most disadvantaged backgrounds are supported to achieve high levels of educational attainment may be a fruitful way of breaking intergenerational poverty cycles, particularly in the lowest mobility areas. Further, our geographical analysis highlights important differences in life chances for disadvantaged women and men across the country - the levelling up strategy is likely to require different approaches across different places, taking into account gender differences in experiences of disadvantaged young people in each setting. Finally, the fact that women are more mobile in terms of earnings but less mobile in terms of family incomes is suggestive of female participation constraints hampering mobility. Enabling more women to participate in the labour market may lead to greater family income mobility for women.
Sectors Communities and Social Services/Policy,Education

 
Description Provided advice to Liz Kendall MP
Geographic Reach National 
Policy Influence Type Participation in a guidance/advisory committee
 
Title Monthly Panel Datasets from Partnership, Fertility, and Labour Market Activity Information for the 1970 British Cohort Study, 1986-2018 
Description This deposit contains three do files w to convert partnership, fertility, and labour market activity information provided with the age 46 wave of the British Cohort Study (BCS70) into monthly panel format. There are separate do files to do this for each of the three aspects. 
Type Of Material Database/Collection of data 
Year Produced 2022 
Provided To Others? Yes  
Impact Not aware of any as yet 
URL https://beta.ukdataservice.ac.uk/datacatalogue/studies/study?id=856023
 
Description Analysis formed part of keynote talk at conference 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Professional Practitioners
Results and Impact The analysis from this project was presented as part of my keynote address at the Scottish and North England Economist workshop in Crieff, Scotland.
Year(s) Of Engagement Activity 2022
 
Description Presentation at Department for Education workshop 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact I presented the findings on geographical variation in social mobility to an audience of Department for Education colleagues, including Special Advisors.
Year(s) Of Engagement Activity 2022
 
Description Presentation at the Scottish Economic Society conference 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Other audiences
Results and Impact I presented findings from this project at the Scottish Economic Society conference, including to academics from around the world.
Year(s) Of Engagement Activity 2021
 
Description Presentation of findings at International Workshop of Applied Economics of Education 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach International
Primary Audience Professional Practitioners
Results and Impact I presented the findings from this work at an international workshop, to leading academics from around the world.
Year(s) Of Engagement Activity 2022
 
Description Presentation to ADR UK Road Show 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Professional Practitioners
Results and Impact I presented the analysis of geographical variation in social mobility to the ADR UK Road Show, designed to showcase the wealth of linked administrative data available for research.
Year(s) Of Engagement Activity 2022
 
Description Presentation to CBI conference 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Industry/Business
Results and Impact I presented findings from this work as part of presentation to CBI workshop.
Year(s) Of Engagement Activity 2020
 
Description Presentation to ESRC Festival of Social Sciences 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Public/other audiences
Results and Impact I discussed this research at a presentation at ESRC Festival of Social Sciences titled: Creating equal opportunities for all: intergenerational mobility in England.
Year(s) Of Engagement Activity 2020
 
Description Presentation to Evidence Exchange 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact I presented findings from this project to the Evidence Exchange, organised by What Works centres.
Year(s) Of Engagement Activity 2020
 
Description Presentation to Her Majesty's Treasury (HMT) 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact Finding from this project were presented to a team of policy advisors and analysts at HMT, interested in designing the levelling up strategy.
Year(s) Of Engagement Activity 2021
 
Description Presentation to Scottish Government 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact We hosted a workshop on inequalities in education, inviting policy makers from Department for Education and Scottish Government. The findings from this research project were presented as part of the introduction to the problems that we were discussing throughout the day. We also had a session introducing the COSMO data set.
Year(s) Of Engagement Activity 2023
 
Description Talk to Local Government Information Unit 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact I presented this research to the LGiU
Year(s) Of Engagement Activity 2020
 
Description Workshop with Office for National Statistics 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Professional Practitioners
Results and Impact We hosted a workshop with ONS to disseminate our research findings and design future collaboration activities. This research was presented as part of the scene setting for the workshop.
Year(s) Of Engagement Activity 2023