Intergenerational Mobility and Credit Constraints

Intergenerational mobility refers to the ability of individuals to move up or down the social and economic ladder relative to their parents’ position. It is a critical aspect of social justice and equality, as it reflects the extent to which society provides equal opportunities for all individuals, regardless of their family background. Access to credit, on the other hand, plays a crucial role in economic mobility, allowing individuals to invest in education, entrepreneurship and other opportunities that can positively impact their socioeconomic status. By enabling individuals to acquire the necessary knowledge and skills, access to credit acts as a catalyst for economic advancement across generations. This chapter provides a comprehensive review of the intergenerational mobility literature, with a specific focus on examining the correlation between intergenerational mobility and access to credit, aiming to shed some light on the topic.