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Intergenerational Income Mobility and Redistributive Policy
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edistributive policy measures may reduce economic inequality and promote greater equality of opportunity. Whether such measures also increase intergen- erational income mobility is the central issue in this thesis.
Focusing on education, the first part of this thesis analyzes the influence of education policy on intergenerational income mobility. It turns out that this influence crucially depends on how public and private human capital invest- ments interdepend on each other. In addition, the impact of education on the strength of the economic parent-child connection is empirically investigated for Germany. The analysis includes factors such as education and occupation in order to explain intergenerational income immobility. Here education proves to be the most important mechanism through which economic advantages and disadvantages are passed across generations in Germany. Thus, according to both theory and empirical evidence, human capital accumulation is vital to economic success.
The second part of this thesis addresses social beliefs regarding the main determinants of economic success that emerge due to personal income mobility experiences. In fact, differences in social beliefs across countries may explain international differences in incentives to work and the preferences for the wel- fare state. The prevalent intergenerational income mobility within society is affected by inequality of opportunity as well as the individual’s willingness to invest in effort. Policy measures that promote greater equality of opportunity may increase or decrease incentives to work. Therefore whether these policy measures additionally increase intergenerational income mobility is ambiguous. This depends on social beliefs as well as the degree of dynastic altruism within societies.
Mareike Schad - Personal Name
1st Edtion
978-3-658-10465-8
NONE
Intergenerational Income Mobility and Redistributive Policy
Management
English
Technische Universität München
2014
München
1-174
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