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Topics in Political Economy and Social Mobility (ECO-AD-SOCMOB)

ECO-AD-SOCMOB

Purpose

 

Description

This course addresses the question of whether and why inequality in economic and social status persists over time, and how institutions and policy are related to the process of persistent inequality.

In the first part of the course, we analyze theories of persistent inequality and intergenerational mobility. In particular, we study persistence in relation to: a) the family transmission of wealth, b) the family transmission of ability and latent factors, c) capital market imperfections, and d) self-fulfilling beliefs.

We then examine recent empirical evidence on contemporary intergenerational mobility, multigenerational processes, and the long-run persistence of economic status, as well as the main challenges in measurement and identification. We will discuss how the empirical evidence on mobility informs and aligns with theories of persistent inequality.

In the second part of the course, we study the mechanisms through which policy and institutions can increase or decrease intergenerational mobility in both the short and the long run. First, we present models and evidence on how norms, cultural values, and beliefs relevant for policy and inequality are persistent and transmitted across generations. Second, we analyze causal designs and evidence on how structural changes in policy, institutions, and historical events may generate long-lasting trends in mobility.

By the end of this course, students will be able to:

• Critically discuss the main theories of persistent inequality and intergenerational mobility.

• Interpret and evaluate contemporary empirical evidence on intergenerational mobility, multigenerational processes, and long-run persistence of economic status.

• Assess measurement and identification challenges in the empirical analysis of mobility.

• Examine causal evidence on the long-term impact of structural policy changes and historical events on intergenerational mobility.

• Develop research questions linking theoretical frameworks and empirical strategies to investigate the persistence of inequality.

The grade will be based on a short proposal of a research project (50%) and a referee report for a recent unpublished paper (50%).

Module structure

WEEK 1:

Topics:

• Theory and mechanisms of persistent inequality

Readings:

• Slides notes and assigned readings.

• T. Piketty (2000), Theories of persistent inequality and intergenerational mobility, Chapter 8 of the Handbook of Income Distribution.

WEEK 2:

Topics:

• Data, measurement and the geography of intergenerational mobility

Readings:

• Slides notes and assigned readings

• Black, S. E., and P. Devereux (2011), Recent Developments in Intergenerational Mobility,” in Handbook of Labor Economics, ed. by O. Ashenfelter, and D. Card, vol. 4A. Elsevier.

• Chetty, Hendren, Kline and Saez (2014), Where is the Land of Opportunity? The Geography of Intergenerational Mobility in the United States, Quarterly Journal of Economics.

 

WEEK 3:

Topics:

• Multigenerational mobility and long-run persistence; linking theory and evidence.

Readings:

• Slides notes and assigned readings

• Belloc, M., F. Drago, M. Fochesato, and R. Galbiati (2024). Multigenerational Transmission of Wealth: Florence, 1403–1480, American Economic Journal: Applied Economics.

• Barone, G. and S. Mocetti. (2021). Intergenerational Mobility in the Very Long Run: Florence 1427–2011, The Review of Economic Studies.

 

WEEK 4:

Topics:

• Institutions, norms and beliefs relevant for intergenerational mobility.

Readings:

• Slides notes and assigned readings

• Bisin, A. and Verdier, T., (2000), The economics of cultural transmission and the dynamics of preferences, Journal of Economic Theory.

 

WEEK 5:

Topics:

• Causal designs for intergenerational mobility: policies and institutions.

Readings:

• Slides notes and assigned readings

 

 

ENROL FOR THIS COURSE