ABSTRACT
This chapter looks at the role of parents in influencing ones' accumulation of human capital and subsequent economic success. Like in the case of intragenerational mobility, transition probabilities between income quintiles can be examined. The issue of intergenerational mobility speaks directly to the equity of the economic system. The consensus estimate of the intergenerational elasticity of income is problematic. One interpretation is that children surrender nearly half the advantage that their parents had in one generation. Given all the obvious advantages that growing up comfortably provides, this is a remarkable degree of mobility. The polar opposite interpretation is that an intergenerational elasticity of.6 means that the advantage a family line has takes more than three generations to disappear. The analysis of intergenerational mobility is still in its infancy. More fully specified models are needed.
