Sreevidya Ayyar, Uta Bolt, Eric French, Jamie Hentall MacCuish, Cormac O’Dea, 05 May 2021

The children of rich families tend to go to better quality schools, have higher cognitive skills, and complete more years of schooling. This column exploits unique data from the National Child Development study to determine these early childhood factors go on to have long-run impacts on an individual’s lifetime earnings, perpetuating a cycle of wealth. These results suggest that policies that equalise investments, such as improving school quality, could promote income mobility.

CEPR Policy Research