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Comparative Studies of Intergenerational Mobility

Paper Session

Saturday, Jan. 4, 2025 8:00 AM - 10:00 AM (PST)

San Francisco Marriott Marquis, Foothill F
Hosted By: Association for Comparative Economic Studies
  • Chair: Gregory Clark, University of California-Davis and University of Southern Denmark

Understanding Non-Convergences in Black-White Mobility and Inequality

Gueyon Kim
,
University of California-Santa Cruz
Steven Durlauf
,
University of Chicago
Dohyeon Lee
,
Amazon
Xi Song
,
University of Pennsylvania

Abstract

This paper studies differences in intergenerational occupational mobility between Black and White Americans. Combining data from linked historical censuses and contemporary large-scale surveys, we study properties of non-convergences and continuing occupational inequalities between the two groups. We find that these disparities are better understood by a lack of exchange mobility rather than structural mobility. We further
investigate possible factors that attribute to the failure of Black-White differences to disappear to explain these non-convergences post-1960s.

The Determinants of Social Status: Denmark and Sweden

Gregory Clark
,
University of California Davis and University of Southern Denmark
Martin Hørlyk Kristensen
,
University of Southern Denmark

Abstract

Collado et al. (2023) develop a clever strategy to estimate the rate and mechanisms of social mobility using three generations of Swedes born 1932-67, by using links across multiple marriages. Their preferred model of mobility, which emphasizes social transmission of status, has 20 parameters which are estimated from 141 observed pairs of relationships. They also claim to rule out genetic transmission as a source of social status. Here we show that a simple genetic model with 3 parameters fits the observed data as well as their 20-parameter model for both Denmark and Sweden. Genetics is still a very viable candidate to explain social outcomes. Whatever the source of transmission, status persistence and marital assortment in both Denmark and Sweden is at very high levels, despite contemporary estimates which imply high rates of social mobility.

Trade Shocks: The Next Generation

Andrew Greenland
,
North Carolina State University
John Lopresti
,
William & Mary
Mina Z. Senses
,
Johns Hopkins University

Abstract

This paper explores the intergenerational effects of import shocks between 1910 and 1940
using linked full-count Census data and a novel identification strategy that isolates quasirandom import growth. We show that individuals exposed to import growth in their first 10 years of life report lower incomes and a higher probability of unemployment 30 years later. We also find a reduced probability of earning more than one’s father, with effects that are most pronounced among high-income individuals. Intergenerational structural change plays a critical role in our results, with import competition reducing the probability that sons work in manufacturing or service regardless of their father’s sector of
employment. Finally, we find a role for import competition both at the county level and in fathers’ industry of employment in explaining our results.

Intergenerational Transmission of Entrepreneurship: Lessons from a Comparative Analysis of Economies Undergoing Systemic Change

John S. Earle
,
George Mason University
Kyung Min Lee
,
World Bank and George Mason University

Abstract

The tendency for children to follow their parents into business-ownership is well documented, but less is known about the mechanisms behind this correlation: inheritance of business or wealth, direct learning-by-doing, or relevant skills and preferences. This paper examines microdata for three generations in countries (Hungary, Poland, Czech Republic, Slovakia, Bulgaria, Russia, China) that experienced decades of prohibition on private ownership, eliminating the inheritance, financial, and direct learning channels. We
find a strong intergenerational correlation from pre- to post-communism in self employment, employer, and large employer status, suggesting important roles for general human capital and preferences. Even countries with severe Communist regimes display strong correlations, albeit weaker than those with relatively relaxed systems, possibly because of variation in the extent to which skills and attitudes were passed across
generations.

Discussant(s)
Caue Dobbin
,
Georgetown University
Katherine Eriksson
,
University of California-Davis
Jacob French
,
New York University
Santiago Pérez
,
University of California-Davis
JEL Classifications
  • J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers
  • N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy