What school finances tell us about intergenerational mobility

Apr 25, 2019

Coloured pencils are pictured in a wooden box at a nursery school in Eichenau near Munich June 18, 2012. REUTERS/Michaela Rehle (GERMANY - Tags: EDUCATION SOCIETY) - LR2E86J1DLVGU

There are large differences in intergenerational income mobility across US states and local labour markets. Image: REUTERS/Michaela Rehle

Barbara Biasi

Assistant Professor of Economics, , Yale School Of Management

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The figure shows the trend in intergenerational mobility (measured as the expected income rank of children with parents on the 25th percentile and relative to 1980) across cohorts, separately for states with a successful school finance reform between (defined as producing either a negative correlation between income and revenues, or a decline of at least 50% after the reform), states with an unsuccessful reform (defined as producing either a positive correlation, or a decline smaller than 50% after the reform), and states with no reform. Image: Biasi (2019).

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