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Skill-biased technological change and intergenerational education mobility

Imran Aziz

Economics of Education Review, 2024, vol. 103, issue C

Abstract: This paper analyses the impact of skill-biased technological change (SBTC) on intergenerational education mobility. I set up an SBTC model with an overlapping-generations framework, where high and low-income households invest in their children’s skill development. Technology incentivizes these investments by raising the skill-premium and improving life-skills; it constrains investments by increasing inequality. I find that, for SBTC shocks within a critical range, intergenerational investments by both household-types are higher in the new steady-state, with the relative increase being larger for the low-income group. I use cross-U.S. commuting-zone data to examine if education mobility outcomes are better in locations characterized by (1) higher STEM-shares, and (2) larger shifts in the demand of relative skills. I empirically find that children from low-income households are not only more likely to attend college if they live in high-tech areas, but this likelihood increases by a larger margin compared to children from higher-income households.

Keywords: Education attainment; Intergenerational mobility; Skill-biased technical change (search for similar items in EconPapers)
JEL-codes: I24 J24 J31 J62 O33 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecoedu:v:103:y:2024:i:c:s0272775724000906

DOI: 10.1016/j.econedurev.2024.102596

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