The paper "Intergenerational Economic Mobility" is a great example of micro and macroeconomic coursework. Intergenerational economic mobility has been defined as the degree of change in the economic status of children and their parents. Usually, the children’ s economic statuses as adults are measured against their parents’ economic statuses to establish intergenerational economic mobility. If income levels of children (as adults) vary greatly from their parents, the mobility is regarded as high. If not much change is observed between children (as adults) and their parents, mobility is regarded as non-existent or minimal.
As would be expected, a link has been established between poor economic outcomes among parents and similar outcomes among their children in their adult years. According to Blanden et al. (2007, p. C43), the strong link could be explained by restricted life chances which poorer parents give their children, which ultimately lead to suboptimal performance in the children’ s economic potential. Significance of intergenerational economic mobility The significance of intergenerational economic mobility is perhaps better understood using trends which indicate that academic performance by students from different economic backgrounds is characterised by a wide gap (Mazunder 2012, p.
1). Specifically, children from high-income backgrounds were seen to perform significantly better academically compared to their counterparts from low-income backgrounds. The significance of the differences in education is further compounded by the finding that the quality of education that children get impacts the quality of their human capital, something that eventually determines their income as adults (Mazunder 2012, p. 2). Blanden et al. (2007, p. C43) draw a link between parents’ economic wellbeing or the lack thereof by noting that education is the most common method through which parents pass their economic wellbeing to their children.
Ideally, children from richer backgrounds get better education opportunities, which translates to better educational outcomes and this often makes them earn better incomes compared to children who missed out on good education opportunities. Blanden et al. (2007, p. C43) however note that in addition to education, the transmission of wealth between parents and their children can also happen through non-cognitive skills and attachment to the labour market early in a child’ s life.
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