The new Raj Chetty paper on changes in opportunity

 [[{“value”:”Here is the paper, with co-authors Will Dobbie, Benjamin Goldman, Sonya R. Porter, and Crystal S. Yang.  Here is the abstract: We show that intergenerational mobility changed rapidly by race and class in recent decades and use these trends to study the causal mechanisms underlying changes in economic mobility. For white children in the U.S.
The post The new Raj Chetty paper on changes in opportunity appeared first on Marginal REVOLUTION.”}]] 

Here is the paper, with co-authors Will Dobbie, Benjamin Goldman, Sonya R. Porter, and Crystal S. Yang.  Here is the abstract:

We show that intergenerational mobility changed rapidly by race and class in recent decades and use these trends to study the causal mechanisms underlying changes in economic mobility. For white children in the U.S. born between 1978 and 1992, earnings increased for children from high-income families but decreased for children from low-income families, increasing earnings gaps by parental income (“class”) by 30%. Earnings increased for Black children at all parental income levels, reducing whiteBlack earnings gaps for children from low-income families by 30%. Class gaps grew and race gaps shrank similarly for non-monetary outcomes such as educational attainment, standardized test scores, and mortality rates. Using a quasi-experimental design, we show that the divergent trends in economic mobility were caused by differential changes in childhood environments, as proxied by parental employment rates, within local communities defined by race, class, and childhood county. Outcomes improve across birth cohorts for children who grow up in communities with increasing parental employment rates, with larger effects for children who move to such communities at younger ages. Children’s outcomes are most strongly related to the parental employment rates of peers they are more likely to interact with, such as those in their own birth cohort, suggesting that the relationship between children’s outcomes and parental employment rates is mediated by social interaction [emphasis added]. Our findings imply that community-level changes in one generation can propagate to the next generation and thereby generate rapid changes in economic mobility.

Here is NYT coverage, here is WSJ coverage.

The post The new Raj Chetty paper on changes in opportunity appeared first on Marginal REVOLUTION.

 Data Source, Economics, Uncategorized 


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