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Intergenerational Mobility and Unequal School Opportunity

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  • Andreu Arenas
  • Jean Hindriks

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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  • Andreu Arenas & Jean Hindriks, 2021. "Intergenerational Mobility and Unequal School Opportunity," The Economic Journal, Royal Economic Society, vol. 131(635), pages 1027-1050.
    • Handle: RePEc:oup:econjl:v:131:y:2021:i:635:p:1027-1050.
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    File URL: http://hdl.handle.net/10.1093/ej/ueaa062
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    Cited by:

    1. 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.
    2. 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.
    3. 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).

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