We apply a novel measure of intergenerational mobility (IM) developed by Güell, Rodríguez Mora, and Telmer (2014) to a rich combination of Italian data allowing us to produce comparable measures of IM of income for 103 Italian provinces. We then exploit the large heterogeneity across Italian provinces in terms of economic and social outcomes to explore how IM correlates with a variety of outcomes. We find that (i) higher IM is positively associated with a variety of “good” economic outcomes, such as higher value added per capita, higher employment, lower unemployment, higher schooling and higher openness and (ii) that also within Italy the “the Great Gatsby Curve” exists: in provinces in which mobility is lower cross-sectional income inequality is larger. We finally explore the correlation between IM and several socio-political outcomes, such as crime and life expectancy, but we do not find any clear systematic relationship on this respect.
Maia Güell, Giovanni Pica, Michele Pellizzari, José V. Rodríguez Mora, 22 March 2015
Gregory Clark, 04 April 2014
Gregory Clark talks to Viv Davies about his new book titled "The Son Also Rises: Surnames and the History of Social Mobility". Using surname data from eight countries, the study concludes that fate and social status is determined by ancestry and that social mobility rates are lower than conventionally estimated, they do not vary across societies and are resistant to social policies. Effectively, capitalism has not led to pervasive, rapid mobility. The interview was recorded in London in March 2014.
Raj Chetty, Nathaniel Hendren, Patrick Kline, Emmanuel Saez, 04 February 2014
The US is supposed to be the land of opportunity. This column presents evidence that is better thought of as the ‘lands of opportunity’. Economic mobility varies dramatically across US cities. Some have upward-income mobility comparable to the most mobile countries in the world. Others have rates below that of any developed country. These geographical differences are correlated with five factors: segregation, income inequality, local school quality, social capital, and family structure.
Pedro Carneiro, Costas Meghir, Matthias Parey, 08 October 2007
In the last 50 years, there has been a striking increase in inequality in children’s home environments across families where mothers have different levels of education. Given that the tendency is rooted in the experience of each family, it is difficult for the welfare system to import change and direct interventions require the invasion of family autonomy and privacy. The authors of CEPR DP6505 assess an alternative potential policy, which targets future parents while still in their youth by affecting their education before they start forming a family.