Conclusions

Abstract

This part focuses on how education investment influences intergenerational income mobility both on theoretical and empirical grounds. As demonstrated in the theory-based study in Chapter 3, public education does not unambiguously increase intergenerational income mobility. The interactive effect of public education and private human capital investment accounts for the impact of education policy on income mobility. Education policy will increase intergenerational income mobility only if public and private human capital investment are substitutes for each other. If public education crowds-in private human capital investment or does not affect it, the implementation of such policy measures will even decrease income mobility.