Intergenerational mobility’s impact on institutional and economic performance

Abstract

This paper explores the effect of parental social status achievement on their children?s achievement. While previous research has extensively discussed the impact of parental social and cultural capital on children?s achievements, our study delves deeper into its broader implications for a country?s economic and institutional performance. Our findings reveal a noteworthy link between the strength of the parent-child achievement relationship and a nation?s economic and institutional performance. Countries with robust institutions and thriving economies tend to exhibit weaker parent-child achievement connections. Intriguingly, the former Yugoslav countries and Southeast Europe demonstrate stronger such relationships compared to Western Europe. Additionally, we identify a negative generational trend in the effect of parental socio-economic status on their children?s status, signaling a potential path toward a more meritocratic society for future generations. We employ various regression techniques, including multi-level modeling and Structural Equation Modeling, to illuminate complex relationships, utilizing data from the World Bank and the European Values Study in our methodological approach.