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Childhood, Schooling and Income Inequality

Author

Listed:
  • Cavapozzi, Danilo
  • Garrouste, Christelle
  • Paccagnella, Omar

    (Munich Center for the Economics of Aging (MEA))

Abstract

Parental or socioeconomic background plays an important role in determining employment outcomes during the individual whole life-cycle. The extent to which individuals move (up or down) the social ladder relative to one¿s parents is known as inter-generational social mobility. In a relatively immobile society individual outcomes, such as education, occupation or incomes, tend to be strongly related to those of their parents. On the one hand, in less mobile societies human skills may be wasted or mis-allocated. On the other hand, the motivations, the effort, the individual productivity may be affected by the lack of equal economic opportunities. These in turn may affect the overall efficiency and growth potential of a country. The influence of parental socio-economic status on the descendants¿ education, incomes and occupation has been widely investigated in the literature (Solon, 2002; Corak, 2004; OECD, 2010). Even though no single indicator can summarize a so puzzling picture, a general pattern that emerges is that a group of countries (namely, Mediterranean countries) shows a low inter-generational social mobility, while another group of countries (for instance, Nordic countries) tends to be relatively mobile. In this contribution we exploit the richness of SHARELIFE information on household economic resources and social background of respondents at the age of 10 to investigate the relationship between their educational attainments, their labour market outcomes and the social environment where they grew up.
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Suggested Citation

  • Cavapozzi, Danilo & Garrouste, Christelle & Paccagnella, Omar, 2010. "Childhood, Schooling and Income Inequality," MEA discussion paper series 10212, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    • Handle: RePEc:mea:meawpa:10212
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    References listed on IDEAS

    as
    1. Jong–Wha Lee & Robert J. Barro, 2001. "Schooling Quality in a Cross–Section of Countries," Economica, London School of Economics and Political Science, vol. 68(272), pages 465-488, November.
    2. Garrouste, Christelle, 2010. "100 years of educational reforms in Europe: a contextual database," MPRA Paper 31853, University Library of Munich, Germany.
    3. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
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    Citations

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    Cited by:

    1. Paccagnella, Omar & Garrouste, Christelle, 2012. "Early-life circumstances and late-life income," MPRA Paper 49506, University Library of Munich, Germany.
    2. Manuel Flores & Adriaan Kalwij, 2014. "The associations between early life circumstances and later life health and employment in Europe," Empirical Economics, Springer, vol. 47(4), pages 1251-1282, December.
    3. Schröder, Mathis, 2013. "Jobless Now, Sick Later? Investigating the Long-term Consequences of Involuntary Job Loss on Health," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 18(1), pages 5-15.
    4. Michał Myck & Monika Oczkowska, 2018. "Shocked by therapy? Unemployment in the first years of the socio‐economic transition in Poland and its long‐term consequences," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 26(4), pages 695-724, October.
    5. Bassetti, Thomas & Rebba, Vincenzo, 2015. "Getting to the Roots of Long-Term Care Needs: A Regression Tree Analysis," MPRA Paper 66167, University Library of Munich, Germany.
    6. Manuel Flores & Pilar García-Gómez & Adriaan Kalwij, 2020. "Early life circumstances and labor market outcomes over the life cycle," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(4), pages 449-468, December.
    7. Martina Celidoni & Luca Pieroni & Luca Salmasi, 2020. "Further Evidence on the Effect of Clean Indoor Air Laws on Smoking: The Italian Case," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 1110-1132, January.
    8. Manuel Flores & Pilar Garcia-Gomez & Adriaan Kalwij, 2015. "Early Life Circumstances and Life Cycle Labor Market Outcomes," Tinbergen Institute Discussion Papers 15-094/V, Tinbergen Institute.

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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