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Intergenerational mobility, school inequality and social segregation

Andreu Arenas () and Jean Hindriks ()
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Andreu Arenas: Université catholique de Louvain, CORE, Belgium

No 2017019, CORE Discussion Papers from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: We study the role of school inequality and social segregation for human capital accu-mulation, inequality and intergenerational mobility. We augment the Becker-Tomes-Solon model of intergenerational mobility, introducing a regime switch model of social segregation at school. Depending on the social background of their parents, children have di erent probability of access to di erent school quality. Abstracting from genetic transmission of ability, we focus on the e ect of social segregation and school inequality on parental in-vestments, education and income levels and inequality, and on intergenerational mobility. We obtain that segregation and school inequality have ambiguous e ects on parental in-vestment. However, we also find that segregation and school inequality raise the average level of educational attainment and income. This is due to the complementarity between parental investment and school quality. Lastly, we show that the e ect of segregation and school inequality on the intergenerational mobility is ambiguous and depends on the distribution of parental income.

Keywords: Intergenerational mobility; education, school system; equality of opportu-nity; segregation (search for similar items in EconPapers)
JEL-codes: I22 J62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu, nep-eur and nep-ltv
Date: 2017-06-30
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