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Intergenerational mobility and the rise and fall of inequality: Lessons from Latin America

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  • Neidhöfer, Guido

Abstract

Countries with high income inequality also show a strong association between parents' and children's economic well-being; i.e. low intergenerational mobility. This study is the first to test this relationship in a between-country and within-country setup; using harmonized micro data from 18 Latin American countries, spanning multiple cohorts. It is shown that experiencing higher income inequality in childhood is associated with lower intergenerational mobility measured in adulthood. Following the same methodology, the influence of economic growth and public education is evaluated: both are positively, significantly, and substantially associated with intergenerational mobility.

Suggested Citation

  • Neidhöfer, Guido, 2018. "Intergenerational mobility and the rise and fall of inequality: Lessons from Latin America," ZEW Discussion Papers 18-049, ZEW - Leibniz Centre for European Economic Research.
  • Handle: RePEc:zbw:zewdip:18049
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    3. Emran, M. Shahe & Shilpi, Forhad, 2017. "Estimating Intergenerational Mobility with Incomplete Data: Coresidency and Truncation Bias in Rank-Based Relative and Absolute Mobility Measures," MPRA Paper 80724, University Library of Munich, Germany.
    4. Guido Neidhöfer & Matías Ciaschi & Leonardo Gasparini & Joaquín Serrano, 2024. "Social mobility and economic development," Journal of Economic Growth, Springer, vol. 29(2), pages 327-359, June.
    5. Martín Trombetta, 2023. "The distributional implications of short-term income mobility: evidence for Latin America," Working Papers 241, Red Nacional de Investigadores en Economía (RedNIE).
    6. Muñoz, Ercio, 2021. "The Geography of Intergenerational Mobility in Latin America and the Caribbean," SocArXiv mc78h, Center for Open Science.
    7. Paolo Brunori & Francisco H.G. Ferreira & Guido Neidhöfer, 2023. "Inequality of opportunity and intergenerational persistence in Latin America," WIDER Working Paper Series wp-2023-39, World Institute for Development Economic Research (UNU-WIDER).
    8. Claver Sanz, Raúl, 2022. "La transmisión intergeneracional de educación: evidencia en América Latina (1870 – 2010) [The Intergenerational Transmission of Education: Evidence from Latin America (1870 - 2010)]," MPRA Paper 111434, University Library of Munich, Germany.
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    More about this item

    Keywords

    Inequality; Intergenerational Mobility; Equality of Opportunity; Human Capital; Growth; Development; Public Education; Great Gatsby Curve; Latin America;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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