On the Importance of Finnishing School: Half a Century of Inter-Generational Economic Mobility in Finland
AbstractTrends in inter-generational economic mobility in Finland are analyzed using panel data from 1950 through 1999 on more than 200 thousand sons and daughters born between 1930 and 1970. A significant decline is estimated in the inter-generational transmission elasticity from the 1930 birth cohort until the baby boom cohorts of the early1950s. After that we observe no increase in the extent of mobility for 1950s and 1960s birth cohorts. The result holds both for sons and daughters. The quite dramatic transformation of the Finnish economy in the second half of the twentieth century is outlined in the paper. However, a decomposition of the inter-generational transmission elasticities across cohorts shows that most of the decline in transmission reflected a reduction in the impact of family income on duration of children’s education accompanied by a decline in the returns to schooling. Despite the large volume of rural–urban migration during this period of transformation, regional mobility played only a minor role in increasing economic mobility.
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Bibliographic InfoPaper provided by Boston University - Department of Economics in its series Boston University - Department of Economics - The Institute for Economic Development Working Papers Series with number dp-141.
Length: 23 pages
Date of creation: Nov 2004
Date of revision:
Inter-generational mobility; cohorts; education; migration;
Other versions of this item:
- Sari Pekkala & Robert E.B. Lucas, 2005. "On the Importance of Finnishing School: Half a Century of Inter-generational Economic Mobility in Finland," Discussion Papers 359, Government Institute for Economic Research Finland (VATT).
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-05-06 (All new papers)
- NEP-EDU-2006-05-06 (Education)
- NEP-HIS-2006-05-06 (Business, Economic & Financial History)
- NEP-HRM-2006-05-06 (Human Capital & Human Resource Management)
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