Human capital and social mobility in low- and middle-income countries

Parental human capital and endowments may affect children’s human capital, which in turn may affect children’s earning and occupations and thus affect social mobility. This paper focuses on what we know about these possible links in low- and middle-income countries. It starts with definitions of human capital and endowments and simple frameworks for guiding the summary of what we know and do not know about these links in low- and middle-income countries. It discusses determinants of children’s human capital in the form of cognitive skills, socioemotional skills and health, which pertain directly to some indicators of social mobility; reviews estimates of the impacts of these forms of human capital, which pertain to some other indicators of social mobility, such as incomes and earnings; and concludes with a summary suggesting some positive impacts of parental human capital and endowments on social mobility in low- and middle-income countries and a discussion of gaps in the literature pertaining to both data and methodology.