Measuring Mobility | The Economics of Childhood Episode 3
Channel: New Economic Thinking
Date: 2023-08-02

Are we a product of our childhood experiences? What determines our adult outcomes? 

In this third episode of #EconomicsOfChildhood, Professor Durlauf explains the challenges faced in attempting to measure mobility and the equality of opportunity. While introducing the concepts of absolute and relative status within mobility statistics he explains the go-to measure of mobility: the intergenerational elasticity of income. Challenging the permanent income hypothesis, Durlauf shows how economics can come to different conclusions about income inequality depending on if the researcher uses a linear or non-linear model. To wrap up the episode, he talks about how researchers can use principles like Markov Chains, to get a better understanding of a person’s social position and life trajectory.

Learn more at http://economicsofchildhood.org/

Produced by Matthew Kulvicki, Nick Alpha & Kurt Semm