Intergenerational Mobility, Siblings' Inequality and Borrowing Constraints

UCSD Economics Discussion Paper No. 98-13

32 Pages Posted: 16 Oct 1998

See all articles by Alejandro Gaviria

Alejandro Gaviria

Universidad de los Andes, Colombia - Department of Economics

Date Written: May 1998

Abstract

This paper uncovers differences in social mobility between rich and poor families. The paper shows, in particular, that borrowing constraints retard social mobility among the poor by preventing poor parents from investing optimally in the their children's human capital. This evidence contradicts several recent studies that argue that innate ability is the overriding determinant of socioeconomic success in the United States. The paper also shows that siblings' inequality seems to be independent of family wealth, which clearly contradicts the predictions of most economic models of resource allocation within the family.

JEL Classification: J24, I22

Suggested Citation

Gaviria, Alejandro, Intergenerational Mobility, Siblings' Inequality and Borrowing Constraints (May 1998). UCSD Economics Discussion Paper No. 98-13, Available at SSRN: https://ssrn.com/abstract=106588 or http://dx.doi.org/10.2139/ssrn.106588

Alejandro Gaviria (Contact Author)

Universidad de los Andes, Colombia - Department of Economics ( email )

Carrera 1a No. 18A-10
Santafe de Bogota, AA4976
Colombia

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