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Inequality of Educational Opportunity? Schools as Mediators of the Intergenerational Transmission of Income

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  • Jesse Rothstein

Abstract

Intergenerational income transmission varies across commuting zones (CZs). I investigate whether children’s educational outcomes help to explain this variation. Differences among CZs in the relationship between parental income and children’s human capital explain only one-ninth of the variation in income transmission. A similar share is explained by differences in the return to human capital. One-third reflects earnings differences not mediated by human capital, and 40% reflects differences in marriage patterns. Intergenerational mobility appears to reflect job networks and the structure of local labor and marriage markets more than it does the education system.

Suggested Citation

  • Jesse Rothstein, 2019. "Inequality of Educational Opportunity? Schools as Mediators of the Intergenerational Transmission of Income," Journal of Labor Economics, University of Chicago Press, vol. 37(S1), pages 85-123.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/700888
    DOI: 10.1086/700888
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    1. Daniel Aaronson & Bhashkar Mazumder, 2008. "Intergenerational Economic Mobility in the United States, 1940 to 2000," Journal of Human Resources, University of Wisconsin Press, vol. 43(1).
    2. Timothy N. Bond & Kevin Lang, 2013. "The Evolution of the Black-White Test Score Gap in Grades K–3: The Fragility of Results," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1468-1479, December.
    3. Brian Jacob & Jesse Rothstein, 2016. "The Measurement of Student Ability in Modern Assessment Systems," Journal of Economic Perspectives, American Economic Association, vol. 30(3), pages 85-108, Summer.
    4. Raj Chetty & Nathaniel Hendren & Patrick Kline & Emmanuel Saez, 2014. "Where is the land of Opportunity? The Geography of Intergenerational Mobility in the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(4), pages 1553-1623.
    5. Jacob, Brian & Rothstein, Jesse, 2016. "The Measurement of Student Ability in Modern Assessment Systems," Department of Economics, Working Paper Series qt24r2j30b, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    6. Melissa S. Kearney & Phillip B. Levine, 2014. "Income Inequality and Early Nonmarital Childbearing," Journal of Human Resources, University of Wisconsin Press, vol. 49(1), pages 1-31.
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    More about this item

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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