Working Paper: NBER ID: w29760
Authors: Neil A. Cholli; Steven N. Durlauf
Abstract: This essay reviews the theory and empirics of intergenerational mobility. Our review draws on models and empirical analyses of classic and more recent work from both economics and sociology. We summarize models and the surrounding empirical evidence of two key sets of mechanisms: family factors (income, education, credit constraints, household composition, and genes) and social factors (schools, neighborhood sorting, racial segregation, and peer and role model effects). We then discuss and evaluate current methods used to measure intergenerational mobility, including linear regressions and Markov chains. Theoretical models imply nonlinear relationships between parent and child status that are often ignored in practice and offer potentially different interpretations of the evidence of heterogeneity in mobility across locations, groups, and time. We conclude that the next generation of studies would benefit from a closer integration of theory with empirics.
Keywords: Intergenerational Mobility; Socioeconomic Status; Family Factors; Social Factors
JEL Codes: D30; H0; J0; R0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Parental income (D31) | Child educational outcomes (I21) |
| Parental education (I24) | Effectiveness of investments in children (J13) |
| Neighborhood quality (R23) | Child outcomes (J13) |
| Genotype (C29) | Educational persistence (I21) |