Effects of Education on the Intergenerational Transmission of Labor Income in Mexico

This paper studies the relationship between the labor market earnings of parents and their children, with a particular emphasis on education. We incorporate heterogeneity of levels of income in two ways: first, by examining the transmission mechanism of family income by grouping households according to income levels. Second, we use quantile regressions to evaluate how the earnings distribution changes over time. For this purpose, we use hourly earnings of the household head and decompose it into the estimated hourly earnings and a residual.