Background:

The question regarding whether the performance of children depends on the results obtained by their parents has become an important object of study for the economic science in recent years (Fields y Ok, 1999; Jäntti y Jenkins, 2013). This paper aims to provide original evidence about intergenerational social mobility (ism) measured through earnings in Uruguay.

Methodology:

The intergenerational elasticity on earnings (IGE) and the intergenerational ran association (IRA) are estimated with two sample two step least square (2S2SLS). This estimator is usually used in those countries that do not have longitudinal information. In addition, with the application of transition matrices and quantile regression approach, nonlinearities in ism are studied.

Results:

The findings locate Uruguay within the group of Latin American countries with high ism, measured through earnings, along with Argentina and Chile. However, this level is low in comparison with the developed European countries, particularly the Scandinavian. In addition, the lowest levels of ism are found in the tail of the distribution.

Conclusions:

Results suggest that people who are born in low-income households have greater difficulties in achieving upward ism. On the other hand, people who are born in high-income households have a low probability of suffering downward ISM.