There are many possible pathways between parental education, income, and health, and between child health and education, but only some of them have been explored in the literature. This essay focuses on links between parental socioeconomic status (as measured by education, income, occupation, or in some cases area of residence) and child health, and between child health and adult education or income. Specifically, I ask two questions: What is the evidence regarding whether parental socioeconomic status affects child health? And, what is the evidence relating child health to future educational and labor market outcomes? I show that there is now strong evidence of both links, suggesting that health could play a role in the intergenerational transmission of economic status.

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Healthy, Wealthy, and Wise: Socioeconomic Status, Poor Health in Childhood, and Human Capital Development

My focus is on the degree to which increasing inequality in the high-income countries, particularly in the United States, is likely to limit economic mobility for the next generation of young adults. I discuss the underlying drivers of opportunity that generate the relationship between inequality and intergenerational mobility. The goal is to explain why America differs from other countries, how intergenerational mobility will change in an era of higher inequality, and how the process is different for the top 1 percent. I begin by presenting evidence that countries with more inequality at one point in time also experience less earnings mobility across the generations, a relationship that has been called “The Great Gatsby Curve.” The interaction between families, labor markets, and public policies all structure a child's opportunities and determine the extent to which adult earnings are related to family background—but they do so in different ways across national contexts. Both cross-country compa...

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Income Inequality, Equality of Opportunity, and Intergenerational Mobility

This chapter seeks to set out what Economists have learned about the effects of early childhood influences on later life outcomes, and about ameliorating the effects of negative influences. We begin with a brief overview of the theory which illustrates that evidence of a causal relationship between a shock in early childhood and a future outcome says little about whether the relationship in question biological or immutable. We then survey recent work which shows that events before five years old can have large long term impacts on adult outcomes. Child and family characteristics measured at school entry do as much to explain future outcomes as factors that labor economists have more traditionally focused on, such as years of education. Yet while children can be permanently damaged at this age, an important message is that the damage can often be remediated. We provide a brief overview of evidence regarding the effectiveness of different types of policies to provide remediation. We conclude with a list of some of (the many) outstanding questions for future research. Hard-copy subscribers may access the tables for this paper here.

Human Capital Development Before Age Five

https://hceconomics.uchicago.edu/sites/default/files/file_uploads/2_HO_Corak_2013_Income-Inequality-JEP-HO_STATIC_2016-01-02a_jld.pdf

Extract from \Income Inequality, Equality of Opportunity, and Intergenerational Mobility"

The 1958 birth cohort or the National Child Development Study (NCDS) began as a study of Perinatal Mortality focussing on just over 17 000 births in a single week in 1958. To address concerns regarding the stillbirth rate not falling, the original study aimed to identify social and obstetric factors linked to stillbirth and neonatal death. The findings contributed to the improvement of maternity services in Britain and to a reduction in perinatal mortality. 1 The initial survey was not planned as a longitudinal study, but subsequently the National Children’s Bureau was commissioned by the Central Advisory Council for Education (The Plowden Committee) to retrace the cohort at age 7 and monitor their educational, physical, and social development. 2

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Cohort profile: 1958 British birth cohort (National Child Development Study)

We analyse in detail the factors that lead to intergenerational persistence among sons, where this is measured as the association between childhood family income and later adult earnings. We seek to account for the level of income persistence in the 1970 BCS cohort and also to explore the decline in mobility in the UK between the 1958 NCDS cohort and the 1970 cohort. The mediating factors considered are cognitive skills, non-cognitive traits, educational attainment and labour market attachment. Changes in the relationships between these variables, parental income and earnings are able to explain over 80% of the rise in intergenerational persistence across the cohorts.

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Accounting for Intergenerational Income Persistence: Noncognitive Skills, Ability and Education

This paper summarizes research on the relative level of intergenerational mobility - whether classified by income, education or social class. The literatures on education and income mobility reveal a similar ranking with South America, other developing nations, southern European countries and France tending to have rather limited mobility although the Nordic countries exhibit strong mobility. Estimates of mobility based on social class point to rather different patterns, and we demonstrate that these differences are most likely generated by intergenerational earnings persistence within social classes. The second part of the paper looks for explanations for the differences in earnings and education persistence and finds that mobility is negatively correlated with inequality and the return to education but positively correlated with a nation's education spending.

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Cross‐country rankings in intergenerational mobility: a comparison of approaches from economics and sociology

In this paper we explore changes over time in higher education (HE) participation and attainment between people from richer and poorer family backgrounds during a time period when the UK higher education system expanded at a rapid rate. We use longitudinal data from three time periods to study temporal shifts in HE participation and attainment across parental income groups for children going to university in the 1970s, 1980s and 1990s. The key finding is a highly policy relevant one, namely that HE expansion has not been equally distributed across people from richer and poorer backgrounds. Rather, it has disproportionately benefited children from relatively rich families. Despite the fact that many more children from higher income backgrounds participated in HE before the recent expansion of the system, the expansion acted to widen participation gaps between rich and poor children. This finding is robust to different measures of education participation and inequality. It also emerges from non-parametric estimations and from a more detailed econometric model allowing for the sequential nature of education choices with potentially different income associations at different stages of the education sequence.

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Educational Inequality and The Expansion of UK Higher Education

It is widely recognised that, on average, children from poorer backgrounds have worse educational outcomes than their better off peers. There is less evidence on how this relationship has changed over time and, indeed, what exactly leads to these inequalities. In this paper we demonstrate that the correlation between family background (as measured by family income) and educational attainment has been rising between children born in the late 1950s and those born two decades later. The remainder of the paper is spent considering the extent to which these associations are due to the causal effects of income rather than the result of other dimensions of family background. We review the approaches taken to answering this question, drawing mainly in the US literature, and then present our own evidence from the UK, discussing the plausible range for the true impact of income on education. Our results indicate that income has a causal relationship with educational attainment.

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Family Income and Educational Attainment: A Review of Approaches and Evidence for Britain

This paper flatly contradicts the common view that anyone can make it in modern Britain. Indeed, rather then weakening, the link between an individual's earnings and those of his or her parents has strengthened. An important part of the explanation is that the expansion of higher education has benefited people from rich families much more than those from poor families. The extent of intergenerational mobility is frequently seen as a measure of the degree of equality of opportunity in society and considerable research has been devoted to obtaining an accurate estimate of it for a number of countries. However little is known about how these connections have altered through time. Sharp increases in educational attainment and rises in earnings (and living standards in general) in more recent generations mean that many observers seem to think that we now live in a more mobile, meritocratic society than in the past. Contrary to this, this research seems to show that where you come from matters more now than in the past. It appears that the extent of intergenerational mobility has actually fallen. The research uses unique data that follow two cohorts of children (one born in 1958, one born in 1970) through childhood and into adulthood. The latest data, collected in 2000, make it possible, for the first time, for researchers to get a good measure of the adult earnings of the second cohort. The key findings are: [1]The connection between earnings and parental income has strengthened for the more recent cohort. Estimates of the relationship between childhood family income and son's adult earnings show that for the 1958 cohort, a son from a family with twice as much income as a second family will earn about 12 percent more in his early thirties than a son from the second family. In the 1970 cohort, the same figure is 25 percent. Therefore, the degree of intergenerational transmission has risen by 13 percentage points. Results for daughters are very similar; [2] Part of the fall in mobility across generations is due to the fact that the expansion of the higher education system has benefited people from rich fa milies much more than those from poor families. This is particularly the case for daughters. The results show that differences in educational attainment across family background have led to a decline in equality of opportunity. This is despite the large expansion in postcompulsory schooling that occurred between the two cohorts. This may be unexpected to some observers, who see great gains in education and earnings from one generation to another and leave the story there. - But these gains have been unequally distributed across society. The majority of beneficiaries have been children from families who were already doing well. If, as seems to have happened, able children from lower income families are excluded from the expansion of education, this will lower national productivity and income in the long run. The implication for government policy is clear. If equality of opportunity is a serious goal of government, it can be facilitated in a way that can enhance economic welfare via policies directed at high ability children whose parents are doing less well.

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Jo Blanden

Papers

Accounting for Intergenerational Income Persistence: Noncognitive Skills, Ability and Education

Cross‐country rankings in intergenerational mobility: a comparison of approaches from economics and sociology

Educational Inequality and The Expansion of UK Higher Education

Family Income and Educational Attainment: A Review of Approaches and Evidence for Britain

Changes in Intergenerational Mobility in Britain