Two-way causality and the slope of the Great Gatsby Curve: Evidence from US regional and cross-country data

• 발행기관: 한국재정학회(구 한국재정·공공경제학회)
• 저자명: B. Philip Jeon Young Lee(이영)
• 간행물 정보: 『한국재정학회 학술대회 논문집』2019년대 경제학공학술대회-분과회의, 1~32쪽, 전체 32쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2019.02.15

영문 초록

This paper investigates the slope of the Great Gatsby Curve, while allowing for the two-way causal relationship between mobility and inequality and controlling for a host of potential determinants of the relationship. Our estimation results based on US regional data indicate that the effects of inequality on mobility in instrumental variable estimations are more than three times larger than those in comparable OLS estimations. The estimated relationship between mobility and inequality using US regional data displays a stable equilibrium. The identified multiplier effect indicates that policies for one would have a positive effect on the other, implying that redistributive policies may have the additional benefit of improving mobility. Estimation results using the cross-country data show a strong positive association of mobility with public expenditure on tertiary education directed at individuals, indicating the importance of scholarships and student loans in improving mobility.

목차

1. Introduction

2. Literature review

3. Empirical strategy

4. Empirical analysis using the US regional data

5. Empirical analysis using cross-country data

키워드

income inequality mobility education Great Gatsby Curve