A state school system should be expected to reduce income inequality and to make intergenerational mobility easier. It is therefore somewhat surprising to observe that Italy, compared with the US, displays less inequality between occupational incomes but has a lower degree of intergenerational upward mobility not only between occupations but also between education levels. In this paper we provide evidence on this empirical puzzle and we offer one theoretical explanation based on the idea that even if moving up the social ladder is easier in Italy, the incentive to move may be lower, making mobility less likely.
Presentation at a Seminar held at the Research Department of the Bank of Italy, 26 November 1996.
