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Inequality and mobility
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
2007 (English)In: Journal of economic growth (Boston), ISSN 1381-4338, E-ISSN 1573-7020, Vol. 12, no 3, 235-259 p.Article in journal (Refereed) Published
Abstract [en]

Acknowledging that wage inequality and intergenerational mobility are strongly interrelated, this paper presents a model in which both are jointly determined. The model enables us to study how inequality and mobility are affected by exogenous changes and what determines their correlation. A main implication of the model is that differences in the amount of public subsidies to education and educational quality produce cross-country patterns with a negative correlation between inequality and mobility. Differences in the labor market, like differences in skill-biased technology or wage compression instead produce a positive correlation. The predictions of the model are found to be consistent with various empirical observations on mobility and inequality.

Place, publisher, year, edition, pages
2007. Vol. 12, no 3, 235-259 p.
Keyword [en]
intergenerational mobility, inequality, educational policy
National Category
Economics and Business
URN: urn:nbn:se:su:diva-55881DOI: 10.1007/s10887-007-9019-xISI: 000249304800002OAI: diva2:407579
authorCount :3Available from: 2011-03-31 Created: 2011-03-30 Last updated: 2011-03-31Bibliographically approved

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