Intergenerational mobility: measurement and the role of borrowing constraints and inherited tastes

• Main Author: Jordi Caballé
• Format: Article
• Language: English
• Published: SpringerOpen 2016-09-01
• Series: SERIEs: Journal of the Spanish Economic Association
• Subjects: Intergenerational mobility; Inherited tastes; Borrowing constraints
• Online Access: http://link.springer.com/article/10.1007/s13209-016-0149-2

Abstract In this paper, I present some popular measures of mobility in economic outcomes within a family across generations. I also discuss two of the most important factors preventing intergenerational mobility: existence of financially constrained individuals and transmission of tastes from parents to children. Finally, I show how these two factors could give raise to dramatic reversals of fortune affecting successive generations of the same dynasty. I will cast the results of the different models I use in terms of the previous measures of intergenerational mobility.