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Rags, riches, and race: The intergenerational economic mobility of black and white families in the United States

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... Finally, the paper contributes to the broad literature on intergenerational mobility in American history (inter alia, Aaronson and Mazumder 2008;Long and Ferrie 2013;Olivetti and Paserman 2015;Bleakley and Ferrie 2016;Ager, Boustan, and Eriksson 2019;Tan 2023), including work that specifically addresses racial differences (Hertz 2005;Mazumder 2014;Collins and Wanamaker 2022;Derenoncourt 2022;Jácome, Kuziemko, and Naidu 2022;Ward 2023). It deepens these literatures by providing new insights into the economic outcomes of formerly enslaved men and women and their children, with unprecedented detail on variation 5 Specifically, we construct a dataset with national coverage for perspective on overall Black-White gaps, we examine a wide range of intergenerational outcomes, we compare sons of farmers of all tenure statuses and sons of men in other occupational categories, and we provide insight on whether status transmission was centered within households as opposed to variation in local characteristics. ...
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Large and persistent racial disparities in land-based wealth were an important legacy of the Reconstruction era. To assess how these disparities were transmitted intergenerationally, we build a dataset to observe Black households’ landholdings in 1880 alongside a sample of White households. We then link sons from all households to the 1900 census records to observe their economic and human capital outcomes. We show that Black landowners, relative to laborers, transmitted substantial intergenerational advantages to their sons, particularly in literacy and homeownership. However, such advantages were small relative to the racial gaps in measures of economic status.
... Furthermore, differences between parental SES groups are relative and not absolute. As a result, upward mobility out of the lower parental SES group and downward mobility out of the highest parental SES group may be most likely to occur among adolescents whose parental SES is already closest to the middle parental SES group, whereas social reproduction is generally most rigid in the lowest and highest socioeconomic strata (De Neubourg et al., 2018;Hertz, 2009). While this would potentially result in overestimated or skewed odds for experiencing social mobility, our current extensive group comparisons provide sufficiently nuanced findings. ...
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... It is important to appreciate that a comparison of farming and nonfarming households based solely on the most widely used measure of mobility, i.e., IGRC (ψ f 1 and ψ n 1 ), may be misleading. The caveat that IGRC or other measures of relative mobility such as intergenerational correlation (IGC) may be misleading in comparing mobility across groups has been emphasized by Hertz (2005), Mazumder (2014), and Bhattacharya and Majumder (2011) in their analysis of racial (black-white) differences in intergenerational income mobility in United States of America. But it has not been adequately appreciated in the literature on intergenerational educational mobility, both in economics and sociology. ...
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We extend the Becker-Tomes model to a rural economy with farm-nonfarm occupational dualism to study intergenerational educational mobility in rural China and India. Using data free of coresidency bias, we find that fathers’ nonfarm occupation and education were complementary in determining sons schooling in India, but separable in China. Sons faced lower mobility in India irrespective of fathers’ occupation. Sensitivity analysis using the Altonji et al. (J. Polit. Econ. 113(1), 151–84, 2005) approach suggests that genetic correlations alone could explain the intergenerational persistence in China, but not in India. Farm-nonfarm differences in returns to education, and geographic mobility are plausible mechanisms behind the contrasting cross-country evidence.
... Given the differences in the quantity and quality of students' social networks and coping strategies across the college years, 46 we controlled for age and level of study (senior vs. non-seniors). Furthermore, we controlled for family income, given its relationship with racial-ethnic identity 47,48 and first-generation status 49 in the United States. Additionally, based on research that suggests that there are different opportunities for social support based on one's living situation, 50 we controlled for whether students lived alone or with other people. ...
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... It is, however, important to recognize that, to understand heterogeneity across groups, cohorts, or countries, the three measures of relative mobility discussed above are not adequate, we also need to look at the intercept estimates of the intergenerational regression equations (Equations 1, 2, and 4). The fact that the measures of relative mobility can be misleading for inter-group comparison of mobility has been emphasized by Mazumder (2014) and Hertz (2005) in their analysis of black-white differences in intergenerational mobility in the USA. 33 ...
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