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Intergenerational mobility and unequal school opportunity

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  • Arenas Jal, Andreu
  • Hindriks, Jean

Abstract

We analyse the impact of unequal school opportunity on intergenerational income mobility and human capital accumulation. Building upon the classical Becker–Tomes–Solon framework, we use a regime-switch model allowing for differences in income transmission across groups. We find that unequal school opportunity raises average human capital because of assortative matching. However, because income dispersion tends to be higher at the top, in most cases unequal school opportunity decreases intergenerational mobility. Calibrating the model to the USA, simulations suggest that school equalisation and desegregation policies have positive effects on mobility at relatively small efficiency costs.
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Suggested Citation

  • Arenas Jal, Andreu & Hindriks, Jean, 2020. "Intergenerational mobility and unequal school opportunity," LIDAM Reprints CORE 3083, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:3083
    Note: In : The Economic Journal, doi.org/10.1093/ej/ueaa062
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    Cited by:

    1. Perelman, Sergio & Pestieau, Pierre & Racionero, Maria, 2023. "Social mobility, education and populism," LIDAM Discussion Papers CORE 2023026, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Zanbaz Ahmed Khan & Biswajit Patra, 2024. "Intergenerational Mobility in South Asia," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 25(1), pages 7-25, March.
    3. Jake Anders & John Jerrim & Lindsey Macmillan, 2022. "Socio-economic inequality in young people's financial capabilities," CEPEO Working Paper Series 22-03, UCL Centre for Education Policy and Equalising Opportunities, revised Feb 2022.
    4. Suzanne Bellue & Lukas Mahler, 2024. "Efficiency and Equity of Education Tracking A Quantitative Analysis," CRC TR 224 Discussion Paper Series crctr224_2024_546, University of Bonn and University of Mannheim, Germany.
    5. van der Weide, Roy & Lakner, Christoph & Mahler, Daniel Gerszon & Narayan, Ambar & Gupta, Rakesh, 2024. "Intergenerational mobility around the world: A new database," Journal of Development Economics, Elsevier, vol. 166(C).
    6. Yang, Xiaoliang & Zhou, Peng, 2022. "Wealth inequality and social mobility: A simulation-based modelling approach," Journal of Economic Behavior & Organization, Elsevier, vol. 196(C), pages 307-329.

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