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Loss Aversion, Education, and Intergenerational Mobility
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Malloy, Liam C. – Education Economics, 2015
Existing empirical work looking at the effects of parental income on IQ, schooling, wealth, race, and personality is only able to explain about half of the observed intergenerational income elasticity. This paper provides a possible behavioral explanation for this elasticity in which heterogeneous agents in sequential generations choose their…
Descriptors: Income, Generational Differences, Mobility, Educational Attainment