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Unequal learning and labour market losses in the crisis: consequences for social mobility

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  • Major, Lee Elliott
  • Eyles, Andrew
  • Machin, Stephen
Abstract
The unequal learning and labour market losses arising in the UK due to the Covid-19 pandemic are used to assess the consequences for social mobility. Labour market and learning losses have been more pronounced for people from poorer families and this is incorporated into a generalisation of the standard, canonical social mobility model. A calibration shows a significantly higher intergenerational elasticity – reflecting lower social mobility – because of the uneven nature of losses by family income, and from dynamic scarring. Results from a randomised information experiment incorporated in a bespoke Social Mobility Survey corroborate this, as participants become more sceptical about the social mobility prospects of the Covid generation when given information about the losses that have occurred in the crisis.

Suggested Citation

  • Major, Lee Elliott & Eyles, Andrew & Machin, Stephen, 2021. "Unequal learning and labour market losses in the crisis: consequences for social mobility," LSE Research Online Documents on Economics 114413, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:114413
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    Cited by:

    1. Lee Elliot Major & Andrew Eyles & Stephen Machin, 2021. "Learning loss since lockdown: variation across the home nations," CEP Covid-19 Analyses cepcovid-19-023, Centre for Economic Performance, LSE.
    2. Hupkau, Claudia & Ruiz-Valenzuela, Jenifer & Isphording, Ingo E. & Machin, Stephen, 2023. "Labour Market Shocks and Parental Investments during the Covid-19 Pandemic," Labour Economics, Elsevier, vol. 82(C).

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    More about this item

    Keywords

    learning loss; labour market loss; crisis; social mobility; Covid-19; coronavirus;
    All these keywords.

    JEL classification:

    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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