How to increase intergenerational mobility – implications for policy

Loading...
Thumbnail Image

URL

Journal Title

Journal ISSN

Volume Title

School of Business | Bachelor's thesis

Authors

Piispanen, Jesse

Date

2021

Major/Subject

Mcode

Degree programme

Taloustiede

Language

en

Pages

30

Series

Abstract

Intergenerational mobility refers to how the outcomes of the next generation are determined by the outcomes of the preceding generation. In this literature review, I examine what mechanisms cause differences in intergenerational mobility across societies and what these mechanisms imply when considering policy targeted at increasing intergenerational mobility. I present theoretical models by Solon (2004) and Becker et al. (2018) to study intergenerational mobility and the effects of government investment, genetic endowments, and the role of human capital. I also present empirical literature concerning intergenerational mobility, focusing on income inequality, neighborhoods and education. Additionally, I follow Guryan et al. (2008) and examine parental time use with children using the American Time Use Survey. I discuss the empirical findings and analyze their policy implications in general and in the context of the discussed theoretical models. I find that policy can affect intergenerational through multiple ways, such as through progressive policies regarding human capital investment, place-based approaches targeted at families living in low-income neighborhoods, and by improving access to education.

Description

Thesis advisor

Stryjan, Miri
Ciprian, Domnisoru

Keywords

intergenerational mobility, income, education, equality

Other note

Citation