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The Scandinavian Fantasy: The Sources of Intergenerational Mobility in Denmark and the U.S

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  • Landersø, Rasmus

    (Rockwool Foundation Research Unit)

  • Heckman, James J.

    (University of Chicago)

Abstract

This paper examines the sources of differences in social mobility between the U.S. and Denmark. Measured by income mobility, Denmark is a more mobile society, but not when measured by educational mobility. There are pronounced nonlinearities in income and educational mobility in both countries. Greater Danish income mobility is largely a consequence of redistributional tax, transfer, and wage compression policies. While Danish social policies for children produce more favorable cognitive test scores for disadvantaged children, these do not translate into more favorable educational outcomes, partly because of disincentives to acquire education arising from the redistributional policies that increase income mobility.

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  • Landersø, Rasmus & Heckman, James J., 2016. "The Scandinavian Fantasy: The Sources of Intergenerational Mobility in Denmark and the U.S," IZA Discussion Papers 10000, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10000
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    More about this item

    Keywords

    inequality; comparative analysis of systems; education; social mobility;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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