Intergenerational Mobility, Economic Shocks, and the Role of Human Capital

Patrick Bennett and Jessica Botros

No 10, Working Papers from University of Liverpool, Department of Economics

Abstract: How do economic shocks at the time of labor market entry interact with the intergenerational persistence of disadvantage? While the importance of family background for future labor market success outweighs the impact of increased unemployment, negative economic shocks disproportionately harm those from disadvantaged backgrounds. As a result, a one standard deviation increase in unemployment causes a 11–15% decrease in intergenerational mobility. Mobility decreases as higher unemployment widens the pre-existing gap in college education by socioeconomic status, and we show that differences in human capital are a key factor which explain rates of both relative and absolute mobility.

Keywords: intergenerational mobility; education; unemployment (search for similar items in EconPapers)
JEL-codes: I20 J60 J62 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2024-07
New Economics Papers: this item is included in nep-edu and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.liverpool.ac.uk/media/livacuk/schoolof ... s/ECON,WP,202410.pdf First version, 2024 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:liv:livedp:202410

Access Statistics for this paper

More papers in Working Papers from University of Liverpool, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Rachel Slater ().