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Intergenerational Mobility and the Process of Development

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Author Info
Maoz, Yishay D
Moav, Omer

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Abstract

This paper offers an explanation for some evidence that intergenerational earnings mobility is higher in more developed economies and that mobility is positively correlated with wage equality. In the model mobility promotes economic growth via its effect on the accumulation and allocation of human capital. Growth influences mobility via its effect on incentives to acquire education and its effect on liquidity constraints upon such acquisition. In the process of development mobility increases and the distribution of education becomes better correlated with ability. Redistributive policy has a negative effect on growth in developed economies and a positive effect in developing economies.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 109 (1999)
Issue (Month): 458 (October)
Pages: 677-97
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Handle: RePEc:ecj:econjl:v:109:y:1999:i:458:p:677-97

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Web page: http://www.res.org.uk/
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  1. Hassler, John & Rodriguez Mora, Jose V. & Zeira, Joseph, 2002. "Inequality and Mobility," Working Paper Series rwp02-009, Harvard University, John F. Kennedy School of Government. [Downloadable!]
    Other versions:
  2. Michele Bernasconi & Paola Profeta, 2007. "Redistribution or Education? The Political Economy of the Social Race," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  3. Shankha Chakraborty & Mausumi Das, 2003. "Mortality, Human Capital and Persistent Inequality," Working papers 119, Centre for Development Economics, Delhi School of Economics. [Downloadable!]
    Other versions:
  4. Gradstein, Mark, 2008. "Endogenous Reversals of Fortune," IZA Discussion Papers 3469, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Dilip Mokherjee & Stefan Napel, 2006. "Intergenerational Mobility and Macroeconomic History Dependence," Discussion Papers 1, Aboa Centre for Economics. [Downloadable!]
    Other versions:
  6. Alesina, Alberto F & La Ferrara, Eliana, 2002. "Preferences for Redistribution in the Land of Opportunities," CEPR Discussion Papers 3155, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  7. Dilip Mookherjee & Debraj Ray, 2000. "Persistent Inequality," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-108, Boston University - Department of Economics, revised Oct 2002. [Downloadable!]
    Other versions:
  8. Alejandro Gaviria & Momi Dahan, 1999. "Sibling Correlations and Social Mobility in Latin America," RES Working Papers 4162, Inter-American Development Bank, Research Department. [Downloadable!]
  9. Ana Hidalgo-Cabrillana, 2004. "Does Asymmetric Information Promote Talented People?," Economics Working Papers we042809, Universidad Carlos III, Departamento de Economía. [Downloadable!]
  10. Ryo Arawatari & Tetsuo Ono, 2009. "Inequality, Mobility and Redistributive Taxation in a Finance-constrained Economy," Discussion Papers in Economics and Business 09-28, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP). [Downloadable!]
  11. Oded Galor & Omer Moav, 2004. "From Physical to Human Capital Accumulation: Inequality and the Process of Development," GE, Growth, Math methods 0410005, EconWPA. [Downloadable!]
    Other versions:
  12. Moav, Omer & Neeman, Zvika, 2008. "Conspicuous Consumption, Human Capital and Poverty," CEPR Discussion Papers 6864, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  13. Francesco Caselli & Nicola Gennaioli, 2006. "Dynastic Management," CEP Discussion Papers dp0741, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  14. Mausumi Das, 2002. "Persistent Inequality: An Explanation Based on Limited Parental Altruism," Working papers 101, Centre for Development Economics, Delhi School of Economics. [Downloadable!]
    Other versions:
  15. Moshe Hazan & Binyamin Berdugo, 2005. "Child Labor, Fertility and Economic Growth," Development and Comp Systems 0507002, EconWPA. [Downloadable!]
    Other versions:
  16. Alejandro Gaviria & Momi Dahan, 1999. "Correlaciones entre hermanos y movilidad social en América Latina," RES Working Papers 4163, Inter-American Development Bank, Research Department. [Downloadable!]
  17. Yishay Maoz, 2008. "“Backslanted X” fertility dynamics and macroeconomics," Journal of Population Economics, Springer, vol. 21(1), pages 159-172, January. [Downloadable!] (restricted)
    Other versions:
  18. Oded Galor & Omer Moav, 2004. "Das Human Kapital: A Theory of the Demise of the Class Structure," GE, Growth, Math methods 0410003, EconWPA. [Downloadable!]
    Other versions:
  19. Oded Galor, 2009. "Inequality and Economic Development: An Overview," Working Papers 2009-3, Brown University, Department of Economics. [Downloadable!]
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