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Title: Income Inequality, Social Mobility, and the Decision to Drop Out of High School
Resulting in 1 citation.
1. Kearney, Melissa S.
Levine, Phillip B.
Income Inequality, Social Mobility, and the Decision to Drop Out of High School
NBER Working Paper No. 20195, National Bureau of Economic Research, June 2014.
Also: http://www.nber.org/papers/w20195
Cohort(s): NLSY79, NLSY97
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Dropouts; Educational Attainment; Educational Longitudinal Study (ELS:2002); High School and Beyond (HSB); High School Diploma; Income; Income Distribution; Mobility, Social; National Education Longitudinal Survey (NELS); Socioeconomic Status (SES)

This paper considers the role that high levels of income inequality and low rates of social mobility play in driving the educational attainment of youth in low-income households in the United States. Using high school degree status from five individual-level surveys, our analysis reveals that low-socioeconomic status (SES) students, and particularly boys, who grow up in locations with greater levels of lower-tail income inequality and lower levels of social mobility are relatively more likely to drop out of high school, conditional on other individual characteristics and contextual factors. The data indicate that this relationship does not reflect alternative characteristics of the place, such as poverty concentration, residential segregation, or public school financing. We propose that the results are consistent with a class of explanations that emphasize a role for perceptions of one’s own identity, position in society, or chances of success. In the end, our empirical results indicate that high levels of lower-tail income inequality and low levels of social mobility hinder educational advancement for disadvantaged youth.
Bibliography Citation
Kearney, Melissa S. and Phillip B. Levine. "Income Inequality, Social Mobility, and the Decision to Drop Out of High School." NBER Working Paper No. 20195, National Bureau of Economic Research, June 2014.