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Long-Run Factors Influencing Intergenerational Perceived Job Status Mobility

In: Inequality, Taxation and Intergenerational Transmission

Author

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  • John A. Bishop
  • Haiyong Liu
  • Juan Gabriel Rodríguez

Abstract

There are conflicting views of the primary role of income inequality in economic development. Many expect that higher income shares at the top reflect substantial economic contributions while others think that these increases in top shares have not translated into higher economic growth. Recently, this debate has been reinvigorated by a new proposal: higher income inequality could hurt economic performance by decreasing future intergenerational mobility. We contribute to this debate by examining the relationship between intergenerational perceived job status mobility and past income inequality. We find a robust negative association of lagged income inequality with upward intergenerational job status mobility and a robust positive association of lagged income inequality with downward intergenerational job status mobility. In addition, we find that the quality of political institutions and religious fractionalization both contribute positively to job status mobility. Higher levels of past Gross Domestic Product (GDP) result in less upward job status mobility and more downward job status mobility.

Suggested Citation

  • John A. Bishop & Haiyong Liu & Juan Gabriel Rodríguez, 2018. "Long-Run Factors Influencing Intergenerational Perceived Job Status Mobility," Research on Economic Inequality, in: Inequality, Taxation and Intergenerational Transmission, volume 26, pages 219-246, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-258520180000026010
    DOI: 10.1108/S1049-258520180000026010
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    More about this item

    Keywords

    Intergenerational mobility; perceived job status; income inequality; political institutions; religious fractionalization; Great Gatsby Curve; J62; D31; I30;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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