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Intergenerational Mobility under Private vs. Public Education

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Author Info

  • James B. Davies

    (University of Western Ontario)

  • Jie Zhang

    (University of Queensland)

  • Jinli Zeng

    (National University of Singapore)

Abstract

This paper analyzes intergenerational earnings mobility in a model where human capital is produced using schooling and parental time. In steady -states more mobile societies have less inequality, but in the short-run higher mobility may result from an increase in inequality. Starting from the same inequality, mobility is higher under public than under private education. A rise in income shocks, for example due to increased returns to ability, or a switch from public to private schooling both increase inequality. However, increased shocks raise mobility in the short-run and do not affect it in the long-run, whereas an increased role for private schooling reduces mobility in both the short- and long-run. That these differences may help to identify the source of changes in inequality, and other real-world implications, are illustrated in a brief discussion of time trends and cross-country differences.

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File URL: http://www.fas.nus.edu.sg/ecs/pub/wp/wp0313.pdf
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Bibliographic Info

Paper provided by National University of Singapore, Department of Economics in its series Departmental Working Papers with number wp0313.

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Length: 24 pages
Date of creation: Jan 2003
Date of revision:
Handle: RePEc:nus:nusewp:wp0313

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Web page: http://www.fas.nus.edu.sg/ecs/index.html
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Related research

Keywords: Mobility; Inequality; Education regimes;

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References

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  2. Lindert, Peter H., 2000. "Three centuries of inequality in Britain and America," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 3, pages 167-216 Elsevier.
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Citations

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Cited by:
  1. Black, Sandra & Devereux, Paul J., 2010. "Recent Developments in Intergenerational Mobility," CEPR Discussion Papers 7786, C.E.P.R. Discussion Papers.
  2. Ichino, Andrea & Karabarbounis, Loukas & Moretti, Enrico, 2010. "The political economy of intergenerational income mobility," CEPR Discussion Papers 7710, C.E.P.R. Discussion Papers.
  3. C. Fan & Jie Zhang, 2013. "Differential fertility and intergenerational mobility under private versus public education," Journal of Population Economics, Springer, vol. 26(3), pages 907-941, July.
  4. Ryo Arawatari & Tetsuo Ono, 2009. "Inequality, Mobility and Redistributive Taxation in a Finance-constrained Economy," Discussion Papers in Economics and Business 09-28, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  5. Ryo Arawatari & Tetsuo Ono, 2009. "Inequality, Mobility and Redistributive Politics," Discussion Papers in Economics and Business 09-12, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  6. Michele Bernasconi & Paola Profeta, 2007. "Redistribution or Education? The Political Economy of the Social Race," CESifo Working Paper Series 1934, CESifo Group Munich.
  7. Milanovic, Branko, 2007. "Where in the world are you? Assessing the importance of circumstance and effort in a world of different mean country incomes and (almost) no migration," MPRA Paper 3420, University Library of Munich, Germany.
  8. Sajid Amin Javed & Mohammad Irfan, 2012. "Intergenerational Mobility: Evidence from Pakistan Panel Household Survey," Poverty and Social Dynamics Paper Series 2012:05, Pakistan Institute of Development Economics.

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