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Intergenerational Mobility, Siblings' Inequality and Borrowing Constraints

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  • Gaviria, Alejandro

Abstract

This paper uncovers differences in social mobility between rich and poor families. The paper shows, in particular, that borrowing constraints retard social mobility among the poor by preventing poor parents from investing optimally in the their children's human capital. This evidence contradicts several recent studies that argue that innate ability is the overriding determinant of socioeconomic success in the United States. The paper also shows that siblings' inequality seems to be independent of family wealth, which clearly contradicts the predictions of most economic models of resource allocation within the family

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  • Gaviria, Alejandro, 1998. "Intergenerational Mobility, Siblings' Inequality and Borrowing Constraints," University of California at San Diego, Economics Working Paper Series qt8x16c72b, Department of Economics, UC San Diego.
    • Handle: RePEc:cdl:ucsdec:qt8x16c72b
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    Cited by:

    1. Momi Dahan & Alejandro Gaviria, 1998. "Actos de los padres y desigualdad entre hermanos," Research Department Publications 4151, Inter-American Development Bank, Research Department.
    2. Havnes, Tarjei & Mogstad, Magne, 2009. "No Child Left Behind: Universal Child Care and Children's Long-Run Outcomes," Memorandum 23/2009, Oslo University, Department of Economics.
    3. Andersen, Lykke Eg, 2000. "Social Mobility in Latin America," Documentos de trabajo 3/2000, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    4. Schneider, Andrea, 2010. "Redistributive taxation vs. education subsidies: Fostering equality and social mobility in an intergenerational model," Economics of Education Review, Elsevier, vol. 29(4), pages 597-605, August.
    5. Yoko Niimi, 2018. "Do borrowing constraints matter for intergenerational educational mobility? Evidence from Japan," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 23(4), pages 628-656, October.
    6. Huang, Jin, 2013. "Intergenerational transmission of educational attainment: The role of household assets," Economics of Education Review, Elsevier, vol. 33(C), pages 112-123.
    7. Bhashkar Mazumder, 2004. "Sibling similarities, differences and economic inequality," Working Paper Series WP-04-13, Federal Reserve Bank of Chicago.
    8. Havnes, Tarjei & Mogstad, Magne, 2011. "Money for nothing? Universal child care and maternal employment," Journal of Public Economics, Elsevier, vol. 95(11), pages 1455-1465.
    9. Black, Sandra E. & Devereux, Paul J., 2011. "Recent Developments in Intergenerational Mobility," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 16, pages 1487-1541, Elsevier.
    10. Nathan D. Grawe & Casey B. Mulligan, 2002. "Economic Interpretations of Intergenerational Correlations," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 45-58, Summer.
    11. Piraino Patrizio, 2020. "Drivers of mobility," WIDER Working Paper Series wp2020-6, World Institute for Development Economic Research (UNU-WIDER).
    12. Patrizio Piraino, 2020. "Drivers of mobility," WIDER Working Paper Series wp-2020-6, World Institute for Development Economic Research (UNU-WIDER).
    13. Ruthanne Deutsch, 1998. "How Early Childhood Interventions Can Reduce Inequality: An Overview of Recent Findings," IDB Publications (Working Papers) 50998, Inter-American Development Bank.
    14. Dahan, Momi & Gaviria, Alejandro, 2003. "Parental actions and sibling inequality," Journal of Development Economics, Elsevier, vol. 72(1), pages 281-297, October.
    15. Florencia Torche, 2015. "Analyses of Intergenerational Mobility," The ANNALS of the American Academy of Political and Social Science, , vol. 657(1), pages 37-62, January.
    16. Haile, Getinet Astatike, 2016. "Intergenerational Mobility in Income and Economic Status in Ethiopia," IZA Discussion Papers 10047, Institute of Labor Economics (IZA).
    17. Levine, David I., 1999. "Choosing the Right Parents: Changes in the Intergenerational Transmission of Inequality Between the 1970s and the early 1990s," Institute for Research on Labor and Employment, Working Paper Series qt9r45b10r, Institute of Industrial Relations, UC Berkeley.
    18. Lykke Andersen, 2001. "Social Mobility in Latin America: Links with Adolescent Schooling," Research Department Publications 3130, Inter-American Development Bank, Research Department.
    19. Cordoba, Juan Carlos & Liu, Xiying, 2014. "Altruism, Fertility and Risk," Staff General Research Papers Archive 37481, Iowa State University, Department of Economics.
    20. Deininger, Klaus, 2003. "Does cost of schooling affect enrollment by the poor? Universal primary education in Uganda," Economics of Education Review, Elsevier, vol. 22(3), pages 291-305, June.
    21. Robert Lucas & Sari Kerr, 2013. "Intergenerational income immobility in Finland: contrasting roles for parental earnings and family income," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 1057-1094, July.
    22. Daniele Checchi, 1999. "Inequality in Incomes and Access to Education. A Cross-Country Analysis (1960-90)," Working Papers 21, University of Milano-Bicocca, Department of Economics, revised May 1999.
    23. Liu, Xiying, 2015. "Optimal population and policy implications," ISU General Staff Papers 201501010800005546, Iowa State University, Department of Economics.
    24. Gonzalo Olcina Vauteren & Luisa Escriche, 2006. "Education And Family Income: Can Poor Children Signal Their Talent?," Working Papers. Serie AD 2006-20, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    25. Chicchi, D., 1999. "Inequality in Income and Access to Education: A Cross-Country Analysis," Research Paper 158, World Institute for Development Economics Research.

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    Keywords

    social mobility; human capital;

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