Can workers still climb the social ladder as middling jobs become scarce? Evidence from two British cohorts

Cecilia García-Peñalosa (), Fabien Petit () and Tanguy van Ypersele
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Cecilia García-Peñalosa: AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, Centre de recherche de la Banque de France - Banque de France

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Abstract: The increase in employment polarization observed in several high-income economies has coincided with a reduction in inter-generational mobility. This paper argues that the disappearance of middling jobs can drive changes in mobility, notably by removing a stepping stone towards high-paying occupations for those from less well-off family backgrounds. Using data from two British cohorts who entered the labour market at two points in time with very different degrees of employment polarization, we examine how parental income affects both entry occupations and occupational upgrading over careers. We find that transitions across occupations are key to mobility and that the impact of parental income has grown over time. At regional level, using a shiftshare IV-strategy, we show that the impact of parental income has increased the most in regions experiencing the greatest increase in polarisation. This indicates that the disappearance of middling jobs played a role in the observed decline in mobility.

Keywords: Inter-generational mobility; Job polarization; Parental income; Occupational transition; British cohort (search for similar items in EconPapers)
Date: 2023-10
New Economics Papers: this item is included in nep-eur
Note: View the original document on HAL open archive server: https://amu.hal.science/hal-04126836
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Published in Labour Economics, 2023, 84, pp.102390. ⟨10.1016/j.labeco.2023.102390⟩

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Journal Article: Can workers still climb the social ladder as middling jobs become scarce? Evidence from two British cohorts (2023)
Working Paper: Can Workers Still Climb the Social Ladder as Middling Jobs Become Scarce? Evidence from Two British Cohorts (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04126836

DOI: 10.1016/j.labeco.2023.102390

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