Intergenerational talent transmission, inequality, and social mobility

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. October 2006 Abstract The paper investigates the effects of intra-family talent transmission when human capital exhibits indivisibilities and parental financing of education involves borrowing constraints. Positive talent correlation reduces social mobility but steady state inequality and macroeconomic history-dependence are not affected. Terms of use: Documents in EconStor mayJEL classification: D31; D91; E25; I21; J24; J62; O15

Aspirations, Segregation, and Occupational Choice

“…For example, as demonstrated by Mookherjee and Ray (2003), the multiplicity of equilibria disappears with a rich enough set of occupational choices. And when agents differ randomly in their educational talents, there (generically) can exist only a finite number of steady states which involve social mobility (see Napel 2007 andSchneider 2008). We incorporate none of these possible extensions in the current model, for the simple reason that we wish to abstract from capital market imperfections and focus instead on the role of location.…”

Intergenerational Mobility

“…However, in both studies talent is identically and independently distributed (i.i.d.). This is at odds with reality 3 and hence Napel and Schneider (2007) show that if child's ability depends on its par-ent's ability in a Markovian way the number of steady states with mobility (SSM) is still finite and under some conditions there is a unique SSM. They also argue that the location of the SSMs and thus the wage inequality is not influenced by the strength of the talent connection but that a stronger connection between parent's and child's ability reduces social mobility.…”

Cash Transfers, Intergenerational Mobility, and the Process of Development

“…Mookherjee and Napel (2007) studied the existence and multiplicity of steady states with mobility. Napel and Schneider (2008) explored the effects of intergenerational talent correlation on steady state mobility and inequality. In these models, education determines a great part of the mobility, whereas the access to education primarily depends on the parent's income.…”