Poverty Persistence: A Dynamic Study of Intergenerational Economic Mobility

Abstract

Poverty persists over time and across generations both at the family and individual level, and is a multidimensional social and economic challenge. This study focuses on the intergenerational economic mobility trends, and then examines how the socioeconomic status of parents' influences children's school, job, income, and asset outcomes. The study has a multidimensional perspective on poverty, which sees poverty as more than just income; limited access to quality education, health care services, jobs, financial resources, and social networks are also involved. Poverty transmission processes, such as inequities in access to education, in the formation of human capital, in employment opportunities, in place of residence, in assets ownership and in debt are explored in particular detail. Aside from this, access to financial services, skills development and public policies and social protection programmes are regarded as tools that can break the intergenerational poverty cycle. A "static" approach to poverty is introduced that instead will be discussed within a "dynamic" approach to the change in the socioeconomic status from generation to generation. The study disputes the idea that economic mobility is all about individual effort and asserts that it is also directly linked to structural opportunities—that which are available to economically disadvantaged families. Identifying factors that encourage or hinder mobility can help policymakers to develop interventions which tackle the root causes of entrenched poverty. The results will support the overall conversation about inclusive growth, social mobility, inequality reduction and sustainable alleviation of poverty, by emphasizing the need for long-term, intergenerational strategies of economic development.