Intergenerational occupational mobility in Latin American economies: An empirical approach

Abstract

Identifying the determinants of intergenerational mobility is an important aim in the development literature. In this article, we examine intergenerational transmission for 6 neglected Latin American Economies (Brazil, Costa Rica, Ecuador, Mexico, Panama and Puerto Rico). We use a multinomial logit model of the determinants of choosing a white-collar job for the child of a father working in farming as compared to a child whose father had a blue- or white-collar job. We find that, in the studied countries, intergenerational occupation transmission is mainly linked to low skilled jobs. Our analysis confirms the low degree of social mobility typical of Latin America, in turn contributing to explaining the low growth rate. Our findings help identify specific target groups – talented young women coming from the agricultural sector – for developing soft skills while at primary or low secondary school and work-related skills while at high secondary school or university.