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Local Intergenerational Mobility

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  • Kourtellos, Andros
  • Marr, Christa
  • Tan, Chih Ming

Abstract

Using NLSY data we investigate whether the observed patterns of economic mobility (as measured by income and educational attainment) exhibit heterogeneity across socioeconomic groups and whether the nature of the heterogeneity can be explained by different levels of persistence in the intergenerational transmission of cognitive and non-cognitive abilities across these groups. In doing so we employ the varying coefficient model (VCM) to estimate nonparametric (local) measures of intergenerational mobility of those outcome variables. By local we mean that the persistence coefficients are modeled as smooth functions of log parental permanent income. Our findings show that intergenerational mobility exhibits nonlinear patterns. Individuals with different parental income are characterized by different degrees of intergenerational mobility. Moreover, we find evidence that suggests cognitive abilities play a role in explaining intergenerational mobility. These findings provide some support for a new class of family investment models that emphasize the role of such abilities in economic mobility.

Suggested Citation

  • Kourtellos, Andros & Marr, Christa & Tan, Chih Ming, 2020. "Local Intergenerational Mobility," European Economic Review, Elsevier, vol. 126(C).
    • Handle: RePEc:eee:eecrev:v:126:y:2020:i:c:s0014292120300921
    DOI: 10.1016/j.euroecorev.2020.103460
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    2. Lekfuangfu, Warn N. & Odermatt, Reto, 2022. "All I have to do is dream? The role of aspirations in intergenerational mobility and well-being," European Economic Review, Elsevier, vol. 148(C).
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    4. Saha, Jay & Barman, Bikash & Chouhan, Pradip, 2020. "Lockdown for COVID-19 and its impact on community mobility in India: An analysis of the COVID-19 Community Mobility Reports, 2020," Children and Youth Services Review, Elsevier, vol. 116(C).

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    More about this item

    Keywords

    intergenerational elasticity; varying coefficient model; skills;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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