Intergenerational Mobility under Education-Effort Complementarity
Alonso Carrera, Jaime (Universidade de Vigo)
Caballé, Jordi (Universitat Autònoma de Barcelona)
Raurich, Xavier (Universitat de Barcelona)

Date: 2018
Abstract: We build a model that, according to the empirical evidence, gives rise to oscillations in wealth within a dynasty while keeping intergenerational persistence in education attainment. We propose a mechanism based on the interaction between wealth and e§ort as suggested by the Carnegie conjecture, according to which wealthier individuals devote less e§ort in their job occupations than poorer. Oscillations in wealth arise from changes in the occupation chosen by di§erent generations of the same dynasty as a response to both inherited wealth and college premium. Our mechanism generates a rich social stratiÖcation with several classes in the long run due to the combination of di§erent levels of education and occupation types. Furthermore, we generate a large mobility in wealth among classes even in the long run. Our model highlights the role played by the minimum cost on education investment, the borrowing constraints, and the complementarity between education and occupational e§ort.
Note: Número d'acord de subvenció MINECO/FEDER/ECO2015-66701
Note: Número d'acord de subvenció MINECO/FEDER/ECO2015-67602
Note: Número d'acord de subvenció MINECO/FEDER/ECO2015-6836
Note: Número d'acord de subvenció FNRA/A*MIDEX/ANR-11-IDEX-0001-02
Note: Número d'acord de subvenció MINECO/SEV-2015-0563
Note: Número d'acord de subvenció AGAUR/2017-SGR-1765
Rights: Tots els drets reservats.
Language: Anglès
Document: article ; recerca ; acceptedVersion
Subject: Matèries del catàleg ; Intergenerational Mobility ; Education ; Occupation
Published in: Macroeconomic dynamics, 2018 , ISSN 1365-1005

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 Record created 2018-03-15, last modified 2020-08-09

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