Social Mobility: The Barro-Becker Children Meet the Laitner-Loury Dynasties

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Social Mobility: The Barro-Becker Children Meet the Laitner-Loury Dynasties

Author Info

Fernando Alvarez (University of Chicago and Universidad Torcuato Di Tella)

Abstract

I compare the predictions of two types of dynastic models for the persistence of wealth across generations: models that focus on uninsurable risk and intergenerational consumption smoothing but abstract from the fertility decision, such as Loury [1981] and Laitner [1992], and models without risk that focus on the fertility decision, such as Becker and Barro [1988]. I show that when both uninsurable risk and fertility decisions are present, a striking result obtains: wealthier parents have more children, but the transfer to each child is independent of wealth. Since this result is counterfactual, I also discuss extensions that can resurrect persistence. (Copyright: Elsevier)

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Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 2 (1999)
Issue (Month): 1 (January)
Pages: 65-103
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Handle: RePEc:red:issued:v:2:y:1999:i:1:p:65-103

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Find related papers by JEL classification:
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
D1 - Microeconomics - - Household Behavior
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Gary S. Becker & Robert J. Barro, 1988. "A Reformulation of the Economic Theory of Fertility," NBER Working Papers 1793, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- Gary S. Becker & Robert J. Barro, . "A Reformulation of the Economic Theory of Fertility," University of Chicago - Population Research Center 85-11, Chicago - Population Research Center. [Downloadable!]
- Becker, Gary S & Barro, Robert J, 1988. "A Reformulation of the Economic Theory of Fertility," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 1-25, February. [Downloadable!] (restricted)
Rosenzweig, Mark R, 1990. "Population Growth and Human Capital Investments: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S38-70, October. [Downloadable!] (restricted)
Benhabib, Jess & Nishimura, Kazuo, 1990. "Endogenous Fertility And Growth," Working Papers 90-20, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
Other versions:
- Benhabib, J. & Nishimura, K., 1990. "Engonenous Fertility And Growth," Papers 201, Australian National University - Department of Economics.
Aghion, Philippe & Bolton, Patrick, 1997. "A Theory of Trickle-Down Growth and Development," Review of Economic Studies, Blackwell Publishing, vol. 64(2), pages 151-72, April. [Downloadable!] (restricted)
Becker, Gary S & Tomes, Nigel, 1986. "Human Capital and the Rise and Fall of Families," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S1-39, July. [Downloadable!] (restricted)
Other versions:
- Gary S. Becker & Nigel Tomes, . "Human Capital and the Rise and Fall of Families," University of Chicago - Population Research Center 84-10, Chicago - Population Research Center.
- Gary S. Becker & Nigel Tomes, 1994. "X. Human Capital and the Rise and Fall of Families," NBER Chapters, in: Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition), pages 257-298 National Bureau of Economic Research, Inc. [Downloadable!]
Banerjee, Abhijit V & Newman, Andrew F, 1993. "Occupational Choice and the Process of Development," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 274-98, April. [Downloadable!] (restricted)
Other versions:
- Abhijit V. Banerjee & Andrew F. Newman, 1990. "Occupational Choice and the Process of Development," Discussion Papers 911, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]

Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Xavier Mateos-Planas, 2002. "The Demographic Transition in Europe: A Neoclassical Dynastic Approach," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(3), pages 646-680, July. [Downloadable!] (restricted)
Other versions:
- Mateos-Planas, X., 2000. "The European Demographic Transition," Discussion Paper Series In Economics And Econometrics 0031, Economics Division, School of Social Sciences, University of Southampton.
Jeremy Greenwood & Nezih Guner & John Knowles, 2002. "More on Marriage, Fertility and the Distribution of Income," RCER Working Papers 489, University of Rochester - Center for Economic Research (RCER). [Downloadable!]
Other versions:
- Jeremy Greenwood & Nezih Guner & and John Knowles, 1999. "More on marriage, fertility, and the distribution of income," Working Paper 9904, Federal Reserve Bank of Cleveland. [Downloadable!]
- Greenwood, J. & Guner, N. & Knkwles, J., 1999. "More on Marriage, Fertility, and the Distribution of Income," Papers 9904, London School of Economics - Centre for Labour Economics.
- Jeremy Greenwood & Nezih Guner & John Knowles, . "More on Marriage, Fertility, and the Distribution of Inocome," CARESS Working Papres 99-05, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences. [Downloadable!]
- Jeremy Greenwood & Nezih Guner & John Knowles, . "More on Marriage, Fertility, and the Distribution of Inocome," Penn CARESS Working Papers 65f9ffed93b3a872de23c94c2, UCLA Department of Economics. [Downloadable!]
- Jeremy Greenwood & Nezih Guner & John A. Knowles, 2003. "More on Marriage, Fertility, and the Distribution of Income," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(3), pages 827-862, 08. [Downloadable!] (restricted)

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