Higher education institutions as mediators of the intergenerational transmission of wealth in Mexico

Abstract

Historically, higher education is considered one of the main routes of upward social mobility. However, given the plurality of options offered by the education system at this level, there may be a distinctive pattern not only of socioeconomic origin but also of economic results after graduating from a specific higher education institution (hei), which can inhibit the promotion of social mobility through hei. Using data from the Intergenerational Social Mobility Module 2016, this paper analyzes whether the hei in Mexico promote the social mobility of their graduates. The results suggest a potential mediating effect of hei in the intergenerational transmission of wealth. This means that the wealth of the original household is an important determinant of the type of hei from which the respondents graduate, furthermore, the type of hei also explains part of the variation in the wealth of the current household of graduates. Specifically, individuals who reported having completed their university studies at the National Polytechnic Institute (ipn, Mexico) present the lowest intergenerational correlation of wealth, 0.18. In contrast, normal schools and the National Pedagogical University (upn, Mexico) have the highest intergenerational persistence rates, 0.48 and 0.47, respectively. Under these findings, it is argued that the type of hei from which individuals graduate can complement the explanation of the mechanisms of intergenerational persistence of wealth.