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Economic Mobility Under Pressure

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  • Simen Markussen
  • Knut Røed

Abstract

Based on complete population data, with the exact same definitions of family class background and economic outcomes for a large number of birth cohorts, we examine post-war trends in intergenera-tional economic mobility in Norway. Standard summary statistics indicate stable or mildly declining rank–rank mobility for sons and sharply declining mobility for daughters. The most conspicuous trend in the mobility patterns is that men and women born into the lowest parts of the parental earnings distribution have fallen behind in terms of own earnings rank, as well as a number of other quality-of-life indicators. A considerable part of this development can be explained by changes in the class distribution of educational attainment and in its rising influence on earnings rank. We argue that although the educational revolution has diminished the role of inherited ability, it has enlarged the influence of the family as provider of a social learning environment.

Suggested Citation

  • Simen Markussen & Knut Røed, 2020. "Economic Mobility Under Pressure," Journal of the European Economic Association, European Economic Association, vol. 18(4), pages 1844-1885.
    • Handle: RePEc:oup:jeurec:v:18:y:2020:i:4:p:1844-1885.
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    File URL: http://hdl.handle.net/10.1093/jeea/jvz044
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    Cited by:

    1. Koeniger, Winfried & Zanella, Carlo, 2022. "Opportunity and inequality across generations," Journal of Public Economics, Elsevier, vol. 208(C).
    2. Markussen, Simen & Røed, Knut, 2023. "The rising influence of family background on early school performance," Economics of Education Review, Elsevier, vol. 97(C).
    3. Monique De Haan & Magnus Stubhaug, 2024. "The Causal Component in the Intergenerational Transmission of Income," CESifo Working Paper Series 11395, CESifo.
    4. Maria F. Hoen & Simen Markussen & Knut Røed, 2022. "Immigration and economic mobility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(4), pages 1589-1630, October.
    5. Marte E. S. Ulvestad & Simen Markussen, 2023. "Born or bred? The roles of nature and nurture for intergenerational persistence in labour market outcomes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 1005-1047, April.
    6. Alstadsæter, Annette & Bratsberg, Bernt & Markussen, Simen & Raaum, Oddbjørn & Røed, Knut, 2023. "Social Gradients in Employment during and after the COVID-19 Pandemic," IZA Discussion Papers 16260, Institute of Labor Economics (IZA).
    7. Simen Markussen & Knut Røed, 2023. "Are richer neighborhoods always better for the kids?," Journal of International Economic Law, Oxford University Press, vol. 23(3), pages 629-651.
    8. Markussen, Simen & Nareklishvili, Maria & Røed, Knut, 2024. "Overeducation and Economic Mobility," IZA Discussion Papers 16798, Institute of Labor Economics (IZA).
    9. Ulrika Ahrsjö & René Karadakic & Joachim Kahr Rasmussen, 2021. "Intergenerational Mobility Trends and the Changing Role of Female Labor," CEBI working paper series 21-19, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).

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