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The table below shows an intergenerational transition matrix of father's (rows) and son's (column) income quintile transition probabilities for Country A 1 2 3
The table below shows an intergenerational transition matrix of father's (rows) and son's (column) income quintile transition probabilities for Country A 1 2 3 4 5 1 0.60 0.22 0.11 0.05 0.02 2 0.12 0.66 0.14 0.06 0.02 3 0.07 0.09 0.58 0.21 0.05 4 0.01 0.04 0.12 0.72 0.11 5 0.02 0.03 0.06 0.09 0.80 A. Calculate the intergenerational mobility index. B. (1) Consider 0.5 as the threshold value between high-mobility and low-mobility, what is Country A's intergenerational social mobility? (2) Suggest two channels to improve intergenerational mobility
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