Accounting for the Trends in Inequality and Intergenerational Mobility in the U.S
Carlos Urrutia () and
No 1256, 2013 Meeting Papers from Society for Economic Dynamics
We analyze the relation between the increase in inequality and the observed trends in intergenerational mobility in the U.S. in the last three decades. As an empirical contribution, we document a significant increase in the intergenerational elasticity of earnings, both at the family level and at the individual level between 1977 and 2008. We then build a dynamic, overlapping generations model with altruism, life-cycle features, stochastic earnings and borrowing constraints for parental investments in the human capital of their offsprings. We use the model to answer the question of whether changes in the earnings process calibrated from the U.S. data can simultaneosuly account for the trends in inequality and intergenerational mobility, while being consistent with the changes in educational attainment and the increasing correlation between college completion and parental income.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:red:sed013:1256
Access Statistics for this paper
More papers in 2013 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().