Inequality and Mobility

John Hassler; Sevi Rodriguez Mora; J. Zeira

Inequality and Mobility

John Hassler, Sevi Rodriguez Mora, J. Zeira

School of Economics

Research output: Working paper › Discussion paper

Abstract / Description of output

Acknowledging that wage inequality and intergenerational mobility are strongly interrelated, this paper presents a model in which both are jointly determined. The model enable us to study how inequality and mobility are affected by exogenous changes and what determines their correlation. A main implication of the model is that differences in the amount of public subsidies to education and educational quality produce cross-country patterns with a negative correlation between inequality and mobility. Differences in the labor market, like differences in skill-biased technology or wage compression instead produce a positive correlation. The predictions of the model are found to be consistent with various empirical observations on mobility and inequality.

Original language	English
Publisher	Edinburgh School of Economics Discussion Paper Series
Number of pages	37
Publication status	Published - Jun 2007

Publication series

Name	ESE Discussion Papers
No.	165

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JOEG98-1
© Hassler, J., Rodriguez Mora, S., & Zeira, J. (2007). Inequality and Mobility. (ESE Discussion Papers; No. 165). Edinburgh School of Economics Discussion Paper Series.
Final published version, 269 KB

http://www.econ.ed.ac.uk/papers/JOEG98-1.pdf

1 Article

Inequality and Mobility
Rodriguez Mora, S., Hassler, J. & Zeira, J., Sept 2007, In: Journal of Economic Growth. 12, 3, p. 235-259 25 p.
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Inequality and Mobility

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Inequality and Mobility

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