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The role of education in enhancing intergenerational income mobility

Author

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  • Joann Wilkie

    (Treasury, Government of Australia)

Abstract

How income is transmitted from generation to generation is important to understanding the distributional impacts of policy. Compared with other OECD countries, labour income in Australia is relatively mobile across generations and Australia also has a moderate level of inequality, based on current household disposable income. OECD countries, with the exception of Canada, have either high inequality and low mobility or low inequality and high mobility. Education is an important factor influencing the extent to which income is transmitted from parent to child. The relatively high standard of minimum education outcomes in Australia and Canada, as reflected in the OECD’s Programme for International Student Assessment scores, are likely to play an important role in explaining Australia and Canada’s experience. Education outcomes alone, however, do not fully explain this combination of relatively high intergenerational income mobility and moderate income inequality.

Suggested Citation

  • Joann Wilkie, 2007. "The role of education in enhancing intergenerational income mobility," Economic Roundup, The Treasury, Australian Government, issue 4, pages 81-100, December.
    • Handle: RePEc:tsy:journl:journl_tsy_er_2007_4_1
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    education; educational investment; income levels; economic mobility; skills;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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