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A Theory of Intergenerational Mobility

Author

Listed:
  • Gary S. Becker
  • Scott Duke Kominers
  • Kevin M. Murphy
  • Jörg L. Spenkuch

Abstract

We study the link between market forces, cross-sectional inequality, and intergenerational mobility. Emphasizing complementarities in the production of human capital, we show that wealthy parents invest, on average, more in their offspring than poorer ones. As a result, economic status persists across generations even in a world with perfect capital markets and without differences in innate ability. In fact, under certain conditions, successive generations of the same family may cease to regress toward the mean. We also consider how short- and long-run mobility are affected by changes in the returns to human capital.

Suggested Citation

  • Gary S. Becker & Scott Duke Kominers & Kevin M. Murphy & Jörg L. Spenkuch, 2018. "A Theory of Intergenerational Mobility," Journal of Political Economy, University of Chicago Press, vol. 126(S1), pages 7-25.
    • Handle: RePEc:ucp:jpolec:doi:10.1086/698759
    DOI: 10.1086/698759
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    More about this item

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D10 - Microeconomics - - Household Behavior - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J0 - Labor and Demographic Economics - - General

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