Rockwool Foundation Research Unit
DK 1307, Copenhagen
Information about this author at RePEc
NBER Working Papers and Publications
|July 2016||The Scandinavian Fantasy: The Sources of Intergenerational Mobility in Denmark and the U.S.|
with James J. Heckman: w22465
This paper examines the sources of differences in social mobility between the U.S. and Denmark. Measured by income mobility, Denmark is a more mobile society, but not when measured by educational mobility. There are pronounced nonlinearities in income and educational mobility in both countries. Greater Danish income mobility is largely a consequence of redistributional tax, transfer, and wage compression policies. While Danish social policies for children produce more favorable cognitive test scores for disadvantaged children, these do not translate into more favorable educational outcomes, partly because of disincentives to acquire education arising from the redistributional policies that increase income mobility.