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Economic Mobility, Family Background, and the Well-Being of Children in the United States and Canada

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Author Info

  • Corak, Miles

    ()
    (University of Ottawa)

  • Curtis, Lori

    ()
    (University of Waterloo)

  • Phipps, Shelley

    ()
    (Dalhousie University)

Abstract

This comparative study of the relationship between family economic background and adult outcomes in the United States and Canada addresses three questions. First, is there something to explain? We suggest that the existing literature finds that there are significant differences in the degree of intergenerational economic mobility between these two countries, relative mobility being lower in the United States. This is the result of lower mobility at the very top and the very bottom of the earnings distribution. Second, does this reflect different underlying values of the citizens in these countries? Findings from comparable public opinion polls suggest that this is not the case. The citizens of both countries have a similar understanding of a successful life, one that is rooted in individual aspirations and freedom. They also have similar views on how these goals should be attained, but with one important exception: Americans differ in that they are more likely to see the State hindering rather than helping the attainment of these goals. Finally, how do the investments these countries make in the future of their children through the family, the labour market, and public policy actually differ? Using a number of representative household surveys we find that the configuration of all three sources of investment and support for children differs significantly, disadvantaged American children living in much more challenging circumstances, and the role of public policy not as strong in determining outcomes.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4814.

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Length: 54 pages
Date of creation: Mar 2010
Date of revision:
Publication status: published in: Timothy M. Smeeding et al. (eds.), Persistence, Privilege, and Parenting: The Comparative Study of Intergenerational Mobility, NY: Russell Sage Foundation, 2011. Parts also published (Miles Corak only) as 'Chasing the Same Dream, Climbing Different Ladders'. Washington: PEW Charitable Trusts, 2010
Handle: RePEc:iza:izadps:dp4814

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Keywords: intergenerational mobility; children; United States; Canada;

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References

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  4. Gary Solon, 2002. "Cross-Country Differences in Intergenerational Earnings Mobility," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 59-66, Summer.
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  23. Bhashkar Mazumder, 2005. "Fortunate Sons: New Estimates of Intergenerational Mobility in the United States Using Social Security Earnings Data," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 235-255, May.
  24. Heisz, Andrew & Corak, Miles, 1998. "The Intergenerational Earnings and Income Mobility of Canadian Men: Evidence from Longitudinal Income Tax Data," Analytical Studies Branch Research Paper Series 1998113e, Statistics Canada, Analytical Studies Branch.
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Citations

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Cited by:
  1. Bradbury, Bruce & Corak, Miles & Waldfogel, Jane & Washbrook, Elizabeth, 2011. "Inequality during the Early Years: Child Outcomes and Readiness to Learn in Australia, Canada, United Kingdom, and United States," IZA Discussion Papers 6120, Institute for the Study of Labor (IZA).
  2. Miles Corak, 2013. "Income Inequality, Equality of Opportunity, and Intergenerational Mobility," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 79-102, Summer.
  3. Shelly Lundberg, 2013. "Educational Inequality and the Returns to Skills," Working Papers 2013-017, Human Capital and Economic Opportunity Working Group.

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