Income inequality , social mobility , and the decision to drop out of high school

@inproceedings{Kearney2016IncomeI,
  title={Income inequality , social mobility , and the decision to drop out of high school},
  author={Melissa Schettini Kearney},
  year={2016}
}
It is widely documented that places with higher levels of income inequality have lower rates of social mobility. But it is an open question as to whether this reflects a causal relationship. We propose that one channel by which higher rates of income inequality might lead to lower rates of upward mobility is through lower rates of human capital investment among low-income individuals. Specifically, we posit that greater levels of income inequality could lead low-income youth to perceive a lower… CONTINUE READING