Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/271981 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10337
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
The increase in employment polarization observed in several high-income economies has coincided with a reduction in inter-generational mobility. This paper argues that the disappearance of middling jobs can drive changes in mobility, notably by removing a stepping stone towards high-paying occupations for those from less well-off family backgrounds. Using data from two British cohorts who entered the labour market at two points in time with very different degrees of employment polarization, we examine how parental income affects both entry occupations and occupational upgrading over careers. We find that transitions across occupations are key to mobility and that the impact of parental income has grown over time. At regional level, using a shift-share IV-strategy, we show that the impact of parental income has increased the most in regions experiencing the greatest increase in polarisation. This indicates that the disappearance of middling jobs played a role in the observed decline in mobility.
Subjects: 
British cohort
inter-generational mobility
job polarization
parental income
occupational transition
JEL: 
J21
J24
J62
O33
R23
Document Type: 
Working Paper
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