Social Mobility: The Barro-Becker Children Meet the Laitner-Loury Dynasties

B-Tier
Journal: Review of Economic Dynamics
Year: 1999
Volume: 2
Issue: 1
Pages: 65-103

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I compare the predictions of two types of dynastic models for the persistence of wealth across generations: models that focus on uninsurable risk and intergenerational consumption smoothing but abstract from the fertility decision, such as Loury [1981] and Laitner [1992], and models without risk that focus on the fertility decision, such as Becker and Barro [1988]. I show that when both uninsurable risk and fertility decisions are present, a striking result obtains: wealthier parents have more children, but the transfer to each child is independent of wealth. Since this result is counterfactual, I also discuss extensions that can resurrect persistence. (Copyright: Elsevier)

Technical Details

RePEc Handle
repec:red:issued:v:2:y:1999:i:1:p:65-103
Journal Field
Macro
Author Count
1
Added to Database
2026-01-24