Capability Deprivation, and the Intergenerational Transmission of Social Disadvantages—Empirical Evidence from Selected Countries

Abstract

Based on longitudinal data from the Cross-National Equivalent File 1980⁻2016 (CNEF 1980⁻2016) the paper analyzes the extent of income inequality and capability deprivation and the driving forces of the intergenerational transmission of social and economic status of two birth cohorts in Germany, and the United States. In both the countries the empirical results show increasing inequality of the real equivalent household income, and younger cohorts experience a higher persistence of social and economic status. In the United States income inequality is more expressed than in Germany, which is in accordance with lower intergenerational income mobility. The contribution of individual and family background characteristics and capability deprivation indicators to intergenerational income mobility is more pronounced in the United States than in Germany. The significant impact of capability deprivation in childhood on the intergenerational transmission of economic chances emphasizes the importance of economic and social policy designated to guarantee the equality of opportunity.

Keywords

• personal income
• wealth and their distribution
• income inequality
• human capital
• measurement and analysis of multidimensional poverty
• intergenerational mobility