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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 and within country setup, using harmonized micro data from 18 Latin American countries spanning multiple cohorts. It is shown that experiencing higher inequality in childhood has a negative effect on intergenerational mobility as adults. Furthermore, the influence of economic growth and public education is evaluated: both have a positive, significant, and substantial effect on intergenerational mobility.

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  • Neidhöfer, Guido, 2016. "Intergenerational mobility and the rise and fall of inequality: Lessons from Latin America," Discussion Papers 2016/3, Free University Berlin, School of Business & Economics.
    • Handle: RePEc:zbw:fubsbe:20163
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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.
    9. Emmanuel Ngoy & Carla Sá & Paula Veiga, 2024. "Exploring socioeconomic-related inequality in children’s cognitive achievement in Peru," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(3), pages 809-832, September.
    10. Claver Sanz, Raúl, 2022. "Movilidad entre generaciones en países africanos: evidencia para la educación [Intergenerational mobility in African countries: evidence for education]," MPRA Paper 111678, University Library of Munich, Germany.
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    13. Claver Sanz, Raúl, 2022. "¿Cómo evoluciona el nivel educativo entre generaciones en Asia (Pacífico y Oriente Medio)? [How is educational attainment evolving between generations in Asia (Pacific and Middle East)?]," MPRA Paper 111792, 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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