Intergenerational Income Mobility in New Zealand

Abstract

Intergenerational mobility considers how a child’s outcomes are associated with their parents’ situation. If intergenerational mobility is low, then a child has less of a chance of moving up the income distribution relative to their parents. This can influence skills development, productivity growth and the achievement of improved living standards. The findings presented in this article highlight the importance of policies that focus resources on improving educational outcomes for students from low socio-economic backgrounds, which would help lift intergenerational economic mobility and support higher living standards for all.