The political economy of Intergenerational income mobility
14 April 2010
Children have talent by nature and parents privately invest in their children’s human capital to make it grow. But for people living in disadvantaged socioeconomic conditions, public education can make the difference and offer them economic opportunities they would not have otherwise. This IZA report investigates the importance of redistributive and progressive educational policies in the improvement of social mobility. It also demonstrates how the interaction between private and collective decisions determines the equilibrium level of social mobility.