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Correlating Social Mobility and Economic Outcomes

Author

Listed:
  • Maia Guell

    (University of Edinburgh, CEPR, FEDEA and IZA)

  • Michele Pellizzari

    (University of Geneva, CEPR, fRDB and IZA)

  • Giovanni Pica

    (Università degli Studi di Milano, LdA, CSEF, Baffi and fRDB)

  • José V. Rodriguez Mora

    (University of Edinburgh and CEPR)

Abstract

We apply a novel measure of intergenerational mobility (IM) developed by Guell, Rodriguez Mora, and Telmer (2014) to a rich combination of Italian data allowing us to produce comparable measures of IM of income for 103 Italian provinces. We then exploit the large heterogeneity across Italian provinces in terms of economic and social outcomes to explore how IM correlates with a variety of outcomes. We find that (i) higher IM is positively associated with a variety of "good" economic outcomes, such as higher value added per capita, higher employment, lower unemployment, higher schooling and higher openness and (ii) that also within Italy the "the Great Gatsby Curve" exists: in provinces in which mobility is lower cross-sectional income inequality is larger. We finally explore the correlation between IM and several socio-political outcomes, such as crime and life expectancy, but we do not find any clear systematic relationship on this respect.

Suggested Citation

  • Maia Guell & Michele Pellizzari & Giovanni Pica & José V. Rodriguez Mora, 2015. "Correlating Social Mobility and Economic Outcomes," Development Working Papers 387, Centro Studi Luca d'Agliano, University of Milano.
    • Handle: RePEc:csl:devewp:387
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Surnames; intergenerational mobility; cross-sectional data analysis.;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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