Intergenerational mobility and racial inequality in education and earnings

doi:10.1017/CBO9780511489228.007

5 - Intergenerational mobility and racial inequality in education and earnings

Published online by Cambridge University Press: 22 September 2009

Edited by

Tariq Modood and

Linda Datcher Loury: Affiliation:
Professor of Economics and Director of the Institute on Race and Social Division Boston University
Glenn C. Loury: Affiliation:
Boston University
Tariq Modood: Affiliation:
University of Bristol
Steven M. Teles: Affiliation:
Brandeis University, Massachusetts

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Summary

Introduction

Most analyses of group differences in earnings examine a cross-section of the population in a given year or compare across two or more different years. A full understanding of the relative standing of racial or other groups requires, however, an analysis of the size and determinants of intergenerational mobility. If an individual's position in the distribution of earnings is determined largely by that of his parents, then the ability of disadvantaged groups to alter their economic status over time will be hampered. In addition, uncovering the causes of intergenerational mobility is necessary to determine to what extent the distribution of society's resources is fair and to find out which policies are most likely to change the circumstances of those at the bottom. In order to address these issues, this paper first discusses the overall level of intergenerational mobility in years of schooling and income. It then outlines factors that either magnify or reduce the effects for African-Americans and ethnic groups in the United States.

The theoretical economics literature examining the effects of family of origin on children's outcomes states that children's earnings and income depend on investment in human capital (as measured, for example, by years of schooling). The amount of that investment depends, in part, on children's endowed capacities and, in part, on parents' earnings and the quantity and quality of other nonpecuniary resources. Literature in sociology and psychology specifies in more detail the exact nature of these nonpecuniary resources. A variety of different models are offered.

Type: Chapter
Information: Ethnicity, Social Mobility, and Public Policy
Comparing the USA and UK
, pp. 160 - 177

DOI: https://doi.org/10.1017/CBO9780511489228.007 [Opens in a new window]

Publisher: Cambridge University Press

Print publication year: 2005

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