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Intergenerational Mobility and Entrepreneurship in Uruguay

Nestor Gandelam and Virginia Robano

Latin American Journal of Economics-formerly Cuadernos de Economía, 2014, vol. 51, issue 2, 195-226

Abstract: We estimate the relationship between parents' education and income and children's schooling in Uruguay (1982-2010), interpreting this as a measure of intergenerational social mobility. Using three methodologies we report that such mobility has decreased over time. Improvements in education in the 1980s and 1990s were unevenly distributed. Computing an index of inequality of opportunity, we show that for mandatory education, this has remained constant, and for non-mandatory education, the increasing trend in inequality observed during the 1990s stagnated in the early 2000s. Finally, using instrumental variables we find that entrepreneurship is associated with greater social mobility.

Keywords: intergenerational social mobility; entrepreneurship; inequality of opportunity (search for similar items in EconPapers)
JEL-codes: I24 J62 L26 (search for similar items in EconPapers)
Date: 2014
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Latin American Journal of Economics-formerly Cuadernos de Economía is currently edited by Raimundo Soto

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Handle: RePEc:ioe:cuadec:v:51:y:2014:i:2:p:195-226