Breaking the Links: Natural Resource Booms and Intergenerational Mobility

8 December 2022 09:53

Breaking the Links: Natural Resource Booms and Intergenerational Mobility

The paper titled "Breaking the Links: Natural Resource Booms and Intergenerational Mobility" by Aline Bütikofer, Antonio Dalla-Zuanna and Kjell G. Salvanes has been published in The Review of Economics and Statistics.

Abstract

The paper demonstrates that a large economic sock such as an oil boom increases intergenerational earnings mobility among directly affected men, mostly through increased bottom-up mobility, but not for women. Preexisting local differences in mobility or shifts in the earnings distributions do not drive these findings. Instead, changes in relative earnings paid to workers with different skills offer the best explanation. Moreover, we document that intergenerational mobility is significantly higher for the indirectly affected thirdgeneration and that the oil boom broke the earnings link between first- and third-generation men.