EconPapers    
Economics at your fingertips  
 

The political economy of intergenerational income mobility

Andrea Ichino, Loukas Karabarbounis and Enrico Moretti

No 7710, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The intergenerational elasticity of income is considered one of the best measures of the degree to which a society gives equal opportunity to its members. While much research has been devoted to measuring this reduced-form parameter, less is known about its underlying structural determinants. Using a model with exogenous talent endowments, endogenous parental investment in children and endogenous redistributive institutions, we identify the structural parameters that govern the intergenerational elasticity of income. The model clarifies how the interaction between private and collective decisions determines the equilibrium level of social mobility. Two societies with similar economic and biological fundamentals may have vastly different degrees of intergenerational mobility depending on their political institutions. We offer empirical evidence in line with the predictions of the model. We conclude that international comparisons of intergenerational elasticity of income are not particularly informative about fairness without taking into account differences in politico-economic institutions.

Keywords: Intergenerational Mobility; Political Institutions; Public Education (search for similar items in EconPapers)
JEL-codes: E24 J62 J68 P16 (search for similar items in EconPapers)
Date: 2010-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=7710 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: THE POLITICAL ECONOMY OF INTERGENERATIONAL INCOME MOBILITY (2011)
Working Paper: The Political Economy of Intergenerational Income Mobility (2010) Downloads
Working Paper: The Political Economy of Intergenerational Income Mobility (2010) Downloads
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:cpr:ceprdp:7710

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=7710

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2020-01-21
Handle: RePEc:cpr:ceprdp:7710