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Begin New Search Topic Economic Mobility Publication Year within 10 Years

1. Tracking workers across generations – a cohort-based analysis

Author:
Rosa Abraham
Publication Date:
09-2023
Content Type:
Working Paper
Institution:
Centre for Sustainable Employment, Azim Premji University
Abstract:
Alongside rapid economic growth, India also saw steady de-agrarianisation of its economy in terms of contribution to GDP. In terms of employment, however, the movement out of agriculture was slower, and when they did exit, it was often a withdrawal from the workforce entirely. In general, more of the workforce are in salaried employment, however, these have filtered differently by gender, caste and religion. While cross-sectional data gives us a sense of how these structural changes affect workers at any given point in time, it cannot tell us how these play out for workers over their lifetime as well as how different generations or cohorts of workers have been affected. Here, we use seven rounds of nationally representative official data to construct cohorts who are tracked over these periods to observe employment participation and the patterns over time. We find that younger generations of women systematically less likely to be in paid employment whereas for men, after a certain age, generations look similar in terms of employment rate. Similarly, when examined from the perspective of cohorts, we find that access to salaried employment has changed by gender and caste, and increase in earnings over time over their lifecycle has slowed for certain groups.
Topic:
Women, Employment, Economic Growth, and Economic Mobility
Political Geography:
South Asia and India

2. Intergenerational Mobility of Economic Well-being in Latin America

Author:
Guido Neidhöfer, Matias Ciaschi, and Leonardo Gasparini
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
We estimate, for the first time, long-run trends in intergenerational economic mobility for a multitude of countries in Latin America going beyond parent-child correlations in educational attainment. We use several indicators of well-being, such as the socio-economic situation of individuals, job stability, homeownership and assets. Unlike estimates based on education, which mostly show increasing social mobility trends, we find that opportunities to achieve a certain level of economic well-being and climb up the social ladder are rather unequally distributed and have not changed much over time in Latin America.
Topic:
Inequality, Economy, Economic Mobility, and Well-Being
Political Geography:
Latin America

3. Why do Preferences for Redistribution Differ Across Countries?

Author:
Gianluca Grimalda, Francesco Farina, Anna Conte, and Ulrich Schmidt
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
We test for different theories purporting to explain cross-country differences in income redistribution through standardized experimental choices. US Americans and Italians demand less redistribution than Norwegians and Germans, regardless of whether self-interest is relevant. Those earning (or expecting to earn) below-median incomes behave as "libertarians" more frequently in the US and Italy than in Germany and Norway. Above-the-median earners behave similarly across countries. Higher overconfidence by US Americans and Italians further reduces their demand for redistribution under uncertainty. The "Prospect of Upward Mobility" hypothesis holds similarly in all countries. US Americans do not reward individual merit more than others.
Topic:
Economic Mobility, Redistribution, Income Distribution, and Behavioral Economics
Political Geography:
Europe, Italy, North America, and United States of America

4. Cross-Country Evidence on the Determinants of Preferences for Redistribution

Author:
Gianluca Grimalda and David Pipke
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Redistribution differs widely across countries, but our understanding of why this is the case is limited. In democracies, the extent of redistribution should ultimately reflect citizens’ preferences. We measure preferences for redistribution in six developed countries through internationally standardized questions in which respondents are faced with realistic budgetary constraints on their choice. We also measure a broad array of demographic, attitudinal, and ideological characteristics and examine their correlations with the preferred pattern of redistribution. As expected, individual income is associated with lower demand for redistribution, but this relationship loses significance once other factors are controlled for. Beliefs on social mobility have, in the aggregate, the largest effect in reducing demand for redistribution, the effect being largest in the US but insignificant in Italy and Slovenia. Trust in government has a negative effect on demand for redistribution across all countries. In line with other studies, we interpret this result as evidence that people believing that the political élite is corrupt demand more redistribution. Financial security, a proxy for the Prospect of Upward Mobility hypothesis, is also a significant correlate of preferences for redistribution, the effect being largest in Japan but small in the UK and Slovenia. Finally, discrimination of racial minorities is associated with lower demand for redistribution, but the effect is only significant in the US and Germany. Overall, the main theories that have been proposed to account for preferences for redistribution are confirmed to be valid, but with significant variation across countries.
Topic:
Minorities, Democracy, Economic Mobility, Social Order, and Redistribution
Political Geography:
Global Focus

5. Social Mobility and Economic Development: Evidence from a Panel of Latin American Regions

Author:
Guido Neidhofer, Matias Ciaschi, Leonardo Gasparini, and Joaquín Serrano
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
We explore the role of social mobility as a driver of economic development by constructing a panel data set that includes measures of intergenerational mobility of education at the sub-national level in Latin America. First, we map the geography of educational mobility for 52 Latin American regions, as well as its evolution over time. Then, through a novel weighting procedure that considers the participation of cohorts to the economy in each year, we estimate the effect of changes in mobility on economic indicators, such as income per capita, poverty, child mortality, and luminosity. Hereby, we control for several covariates, including migration, educational expansions, initial conditions, and unobserved cross-regional heterogeneity. Our findings show that increasing social mobility had a significant and robust impact on the development of Latin American regions.
Topic:
Development, Economic Growth, Economic Mobility, Equality, and Equality of Opportunity
Political Geography:
Latin America

6. Working Together to Address Health Workforce Mobility in Europe

Publication Date:
09-2020
Content Type:
Policy Brief
Institution:
Open Society Foundations
Abstract:
The free movement of people is a cornerstone of an open and integrated Europe. Yet the labor migration of Europeans from lower-income countries in southern and eastern Europe to higher-income countries in northern and western Europe has had significant impact on the workforce—including the loss of skilled health professionals in their most productive years. Indeed, since 1989, hundreds of thousands of European health professionals have left their countries of origin for more promising opportunities in the west and north. Denied opportunities for decent work at home, and recruited by countries facing their own labor shortages, their mobility is a byproduct of a failure throughout Europe to develop health workforces in an evidence-based and strategic way. Ultimately, this failure threatens the human right to health. This brief offers policymakers six key insights, drawn from a literature review and interviews with European experts, on the migration and mobility of health professionals. These insights are offered within a framework that prioritizes human rights, gender equality, and worker solidarity.
Topic:
Migration, Labor Issues, Health Care Policy, European Union, Economic Mobility, and Migrant Workers
Political Geography:
Europe

7. Child Skill Production: Accounting for Parental and Market-Based Time and Goods Investments

Author:
Elizabeth Caucutt, Lance Lochner, Joseph Mullins, and Youngmin Park
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Centre for Human Capital and Productivity (CHCP), Western University
Abstract:
This paper studies the multidimensional nature of investments in children within a dynamic framework. In particular, we examine the roles of parental time investments, purchased home goods/services inputs, and market-based child care services. We first document strong increases in total investment expenditures by maternal education; yet expenditure shares, which skew heavily towards parental time, vary little with parental schooling. Second, we develop an intergenerational lifecycle model with multiple child investment inputs to study these patterns and the impacts of policies that alter the prices of different inputs. We analytically characterize investment behavior, focusing on the substitutability of different investment inputs and the way parental skills affect the productivity of family-based inputs. Third, we develop an estimation strategy that exploits intratemporal optimality conditions based on relative demand to estimate substitutability between inputs, the relative productivity of different inputs, and the role played by parental education. This approach requires no assumptions about the dynamics of skill investment, preferences, or credit markets. We also account for mismeasured inputs and wages, as well as unobserved heterogeneity in parenting skills. We further show how noisy measures of child achievement (measured several years apart) can also be incorporated in a generalized method of moments approach to additionally identify the dynamics of skill accumulation. Fourth, we use data from the Child Development Supplement of the Panel Study of Income Dynamics to estimate the skill production technology for children ages 12 and younger. Our estimates suggest complementarity between parental time and home goods/services inputs as well as between these family-based inputs and market-based child care, with elasticities of substitution ranging from 0.2 to 0.5. We find no systematic effects of parental education on the relative productivity of parental time and other home inputs. Finally, we use counterfactual simulations to explore the extent and sources of variation in investments across families, as well as investment responses to changes in input prices. We find that variation in prices explains 48% of the overall variance in investment expenditures, and differences in wages explain more than half of the investment expenditure gap between college-educated and non-college-educated parents. We further show that accounting for the degree of input complementarity implied by our estimates has important implications for the responses of individual inputs to any price change and for the responses in total investments and skill accumulation to large (but not small) price changes.
Topic:
Economics, Labor Issues, Children, Human Capital, Economic Mobility, Credit, Productivity, Skilled Labor, and Price
Political Geography:
Global Focus

8. Perceived and Actual Option Values of College Enrollment

Author:
Yifan Gong, Ralph Stinebrickner, and Todd Stinebrickner
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Centre for Human Capital and Productivity (CHCP), Western University
Abstract:
An important feature of post-secondary schooling is the experimentation that accompanies sequential decision-making. Specifically, by entering college, a student gains the option to decide at a future time whether it is optimal to remain in college or to drop out, after resolving uncertainty that existed at entrance about factors that affect the return to college. This paper uses data from the Berea Panel Study to quantify the value of this option. The unique nature of the data allows us to make a distinction between “actual” option values and “perceived” option values and to examine the accuracy of students’ perceptions. We find that the average perceived option value is 65% smaller than the average actual option value ($8,670 versus $25,040). A further investigation suggests that this understatement is not due to misperceptions about how much uncertainty is resolved during college, but, rather, because of overoptimism at entrance about the returns to college. In terms of policy implications related to college entrance, we do not find evidence that students understate the overall value of college, which depends on the sum of the option value and expectations at entrance about the returns to college.
Topic:
Economics, Labor Issues, Human Capital, Higher Education, Economic Mobility, and Productivity
Political Geography:
Global Focus

9. Income Segregation and Intergenerational Mobility Across Colleges in the United States

Author:
Raj Chetty, John N. Friedman, Emmanuel Saez, Nicholas Turner, and Danny Yagan
Publication Date:
02-2020
Content Type:
Research Paper
Institution:
Watson Institute for International and Public Affairs at Brown University
Abstract:
We construct publicly available statistics on parents’ incomes and students’ earnings outcomes for each college in the U.S. using de-identified data from tax records. These statistics reveal that the degree of parental income segregation across colleges is very high, similar to that across neighborhoods. Differences in post-college earnings between children from low- and high-income families are much smaller among students who attend the same college than across colleges. Colleges with the best earnings outcomes predominantly enroll students from high-income families, although a few mid-tier public colleges have both low parent income levels and high student earnings. Linking these income data to SAT and ACT scores, we simulate how changes in the allocation of students to colleges affects segregation and intergenerational mobility. Equalizing application, admission, and matriculation rates across parental income groups conditional on test scores would reduce segregation substantially, primarily by increasing the representation of middle-class students at more selective colleges. However, it would have little impact on the fraction of low-income students at elite private colleges because there are relatively few students from low-income families with sufficiently high SAT/ACT scores. Differences in parental income distributions across colleges could be eliminated by giving low and middle-income students a sliding-scale preference in the application and admissions process similar to that implicitly given to legacy students at elite private colleges. Assuming that 80% of observational differences in students’ earnings conditional on test scores, race, and parental income are due to colleges’ causal effects – a strong assumption, but one consistent with prior work – such changes could reduce intergenerational income persistence among college students by about 25%. We conclude that changing how students are allocated to colleges could substantially reduce segregation and increase intergenerational mobility, even without changing colleges’ educational programs
Topic:
Income Inequality, Economic Inequality, Higher Education, and Economic Mobility
Political Geography:
North America and United States of America

10. K-12: COVID-19 Disruption Must Lead To Overdue Reform

Author:
Committee for Economic Development of the Conference Board
Publication Date:
07-2020
Content Type:
Policy Brief
Institution:
The Conference Board
Abstract:
High quality education is a critical pathway to career success and economic mobility, particularly for students from low-income backgrounds.1 An education system that invests in children beginning at the earliest ages and supports their development as both citizens and skilled workforce entrants of the future—with both in-demand cutting-edge abilities and knowledge and the tools to continue to upgrade their education and training across the course of their career—is a necessity to ensuring that US employers remain globally competitive and that all Americans share in broad-based and growing prosperity in the 21st century. Pre-pandemic, even with low measured unemployment, there were reasons to be worried that US education was failing to live up to its full potential to better serve many students. Employers remained worried about the preparedness of the workforce, with nearly 40 percent of employers reporting that they couldn’t attract workers with the skills they needed, even for entry-level jobs.2 Despite the lure of higher average wages and employment rates for college graduates, a third of recent high school graduates did not enroll in college in October of 2019, and based on past studies, only about forty percent of students who do enroll in college will complete a degree within six years.3 In 2018, nearly a quarter of full-time workers aged 25 to 64 were earning less than $15 per hour and the labor force participation of American workers between the ages of 25 and 54 remained stubbornly low.4 Policymakers, educators, and business leaders were already faced with the task of improving the status quo; as outlined in Early Education and Child Care: The Essential Sector and Developing the Future Workforce: Revitalizing Postsecondary Education and Training After COVID-19, the COVID-19 pandemic has upended the nation’s education and training at every level. Elementary and secondary education is no exception. The disruption to date has already set back student learning, widened existing educational disparities, and placed K-12 schools under enormous pressure to chart a viable path forward through the end of the pandemic even as local conditions remain subject to rapid change.
Topic:
Education, Reform, Economy, Economic Mobility, and COVID-19
Political Geography:
North America and United States of America