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Does Economic Inequality Constrain Intergenerational Economic Mobility? The Association Between Income Inequality During Childhood and Intergenerational Income Persistence in the United States

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  • Jaehyun Nam

    (Pusan National University)

Abstract

Using the National Longitudinal Study of Youth 1979, I examine the association between income inequality and intergenerational income mobility in the United States. This study finds that rising income inequality is associated with strengthening the importance of parental family income to child’s income. Particularly, the evidence that greater income inequality decreases intergenerational income mobility is clearer when interstate migration problems are addressed. This evidence indicates that income inequality matters since it hinders the equal opportunity to succeed, especially for children from low-income families. If equality of opportunity is a value for policymakers, it provides justification for policy interventions and government efforts to reduce income inequality. A number of sensitivity tests confirm that the main results are robust and reliable.

Suggested Citation

  • Jaehyun Nam, 2021. "Does Economic Inequality Constrain Intergenerational Economic Mobility? The Association Between Income Inequality During Childhood and Intergenerational Income Persistence in the United States," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(2), pages 469-488, April.
    • Handle: RePEc:spr:soinre:v:154:y:2021:i:2:d:10.1007_s11205-020-02579-2
    DOI: 10.1007/s11205-020-02579-2
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    References listed on IDEAS

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    Cited by:

    1. Jared Abigail Valencia-Salvador & Fabio Humberto Sepúlveda-Murillo & Miguel Alfonso Flores-Sánchez & Norely Margarita Soto Builes, 2022. "Spatial Distribution of Social Inequality in the Metropolitan District of Quito, Ecuador," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(2), pages 753-769, September.
    2. Lijie Song, 2022. "Examining the Relationship Between Intergenerational Upward Mobility and Inequality: Evidence from Panel Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 1-27, August.
    3. Liu, Qijun & Song, Lijie, 2022. "Do intergovernmental transfers boost intergenerational income mobility? Evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 293-309.

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