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Explore the latest working papers and publications from our community of scholars. Here, you will find cutting-edge empirical research on socioeconomic disparities, barriers to social mobility, and the strategies to ameliorate inequality.

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1081

Accounting for Individual-Specific Heterogeneity in Intergenerational Income Mobility

Working Paper

January 13, 2025

AuthorsYoosoon Chang, Steven Durlauf, Bo Hu, Joon Park

NBER

We developed a nonparametric model to study intergenerational income mobility, allowing for nonlinearities and interactions among factors like race, education, and parental age. Using PSID data, we analyzed how these dynamics affect children’s economic outcomes.

Standard models often overlook complex interactions in mobility. Our approach captures how race and parental education shape opportunities, offering a more nuanced understanding of barriers to economic mobility.

Our findings reveal how interactions between parental income, race, and education create mobility bottlenecks, providing insights for policies aimed at reducing economic inequality and promoting upward mobility.

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