Study finds a low degree of social mobility in Latin America

A new GLO Discussion Paper provides evidence that in Latin American countries intergenerational occupational transmissions mainly relate to low skilled jobs, confirming a low degree of social mobility.

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GLO Discussion Paper No. 489, 2020

Intergenerational Occupational Mobility in Latin American Economies: An Empirical ApproachDownload PDF
by
Doruk, Ömer Tuğsal & Pastore, Francesco & Yavuz, Hasan Bilgehan

Author Abstract: Identifying the determinants of intergenerational mobility is an important aim in the development literature. In this article, intergenerational transmission is examined for 6 neglected Latin American Economies (Brazil, Costa Rica, Ecuador, Mexico, Panama and Puerto Rico). We use a multinomial logit model of the determinants of choosing a white-collar job for a child of a father working in farming as compared to a child whose father had a blue- or a white-collar job. Our findings show that, in the studied countries, intergenerational occupation transmission is mainly linked to low skilled jobs. Our analysis confirms the low degree of social mobility typical of Latin America, contributing, in turn, to explain their low growth rate. Our findings help identifying specific target groups – talented young women coming from the agricultural sector – to develop in them soft skills while at primary or low secondary school and work-related skills while at the high secondary school or at the university.

GLO Fellows Francesco Pastore & Hasan Bilgehan Yavuz; GLO Affiliate Ömer Tuğsal Doruk

Related paper: Amelie Constant & Klaus F. Zimmermann, Occupational Choice Across Generations, Applied Economics Quarterly, 49 (2003), 299-317.

GLO Discussion Papers are research and policy papers of the GLO Network which are widely circulated to encourage discussion. Provided in cooperation with EconStor, a service of the ZBW – Leibniz Information Centre for Economics, GLO Discussion Papers are among others listed in RePEc (see IDEAS,  EconPapers)Complete list of all GLO DPs – downloadable for free.

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