We analyse in detail the factors that lead to intergenerational persistence among sons, where this is measured as the association between childhood family income and later adult earnings. We seek to account for the level of income persistence in the 1970 BCS cohort and also to explore the decline in mobility in the UK between the 1958 NCDS cohort and the 1970 cohort. The mediating factors considered are cognitive skills, non-cognitive traits, educational attainment and labour market attachment. Changes in the relationships between these variables, parental income and earnings are able to explain over 80% of the rise in intergenerational persistence across the cohorts.
There is currently a debate in policy circles about access to "the upper echelons of power" (Sir John Major, ex Prime Minister, 2013). This research seeks to understand the relationship between family background and early access to top occupations. We find that privately educated graduates are a third more likely to enter into high status occupations than state educated graduates from similarly affluent families and neighbourhoods. A modest part of this difference is driven by educational attainment with a larger part of the story working through the university that the privately educated graduates attend. Staying on to do a Masters and higher degree is also a (smaller) part of the picture. We explore one potential mechanism which is often posited as a route in accessing top jobs: the role of networks. We find that although networks cannot account for the private school advantage, the use of networks provides an additional advantage over and above background and this varies by the type of top occupation that the graduate enters. A private school graduate who uses personal networks to enter into a top managerial position has a 1.5 percentage point advantage (on a baseline 6.1%) over a state school graduate who uses other ways to find their job.
JEL classification: J62, L14
for comments and useful insights. We would like to thank the following groups for their funding support: Economic and Social Research Council (ESRC). ES/ K00817X/1. Funding to pay the Open Access publication charges for this article was provided by The
The UK government has expressed a desire to increase social mobility, with policies to help achieve this aim focused on reducing inequalities in educational attainment. This paper draws together established and new information about the contribution that higher education can make to social mobility using a life-course approach, considering differences by family background in terms of university attendance and achievement, as well as occupation and earnings following graduation. We find substantial socio-economic differences at each stage. Young people from poorer backgrounds are, on average, less likely to go to university than their richer peers. Even among the selected group who do go to university, they are less likely to attend the highest status institutions, less likely to graduate, and less likely to achieve the highest degree classes. These differences in degree outcomes contribute to the lower average earnings of graduates from poorer families, but earnings differentials go well beyond those driven purely by degree attainment or institution attended. The evidence strongly suggests that, even after taking these factors into account, graduates from affluent families are more likely to obtain a professional job and to see higher earnings growth in the labour market. We discuss the implications of these findings for the prospects of higher education as a route to greater social mobility.
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