Study: Generational Income Mobility in North America and Europe

Parenting style, and the social resources available to parents, will become increasingly important concerns if wealthy countries are to continue to promote an agenda of equal opportunity, according to the new book Generational Income Mobility in North America and Europe.

Children in rich countries today are growing up in a very different world than children a generation ago. But children still live in poverty, and many countries have set explicit targets to reduce child poverty.

The book, part of the research program of Statistics Canada's Family and Labour Studies Division, explores the premise that if children are raised in a state of low income, there will be long-term consequences. Will they become less than they otherwise could be, and indeed grow up to be poor adults who in turn raise poor children?

The book examines what is known as "generational income mobility." This term refers to the link between the socio-economic status of parents, particularly their income, and the status and income that their children will end up with in adulthood.

Understanding the extent of generational mobility is a first step in understanding the consequences of income inequalities, as well as the extent of "equality of opportunity."

This book contains a number of essays that analyze the degree of generational income mobility in various wealthy countries, and offers findings that may help to inform policy-makers.

It places the situation in Canada in an international context, and offers comparable estimates of the degree of mobility, how it has changed through time and the impact of government policy.

Its analysis suggests that future directions for social policy may not be so much in the area of increased access to higher education. Rather, the stress may be on circumstances much earlier in life that put individuals in the fortunate situation of being able to choose whether to go on to higher education.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Miles Corak (613-951-9047), Family and Labour Studies Division, Statistics Canada. For more information about the book Generational Income Mobility in North America and Europe, or to purchase a copy, visit the Cambridge University Press Web page (www.cambridge.org).