An Analysis Of Social Mobility On Growth

This paper studies the path and effect of social mobility on economic growth,and puts forward three hypotheses.First,social mobility can be divided into subjective and objective aspects,namely,the level of social mobility and the level of perception of social mobility.Owing to the limited cognitive ability of economic individuals,there are differences between individual perception of social mobility and social mobility in many cases.The difference of perception between objective social mobility and subjective social mobility forms the uncertainty of economic system on individual incentives,which will bring about changes in individual human capital investment and labor time investment,and then affect economic growth.Secondly,the article theoretically proves that the sustained economic growth comes from the accumulation of human capital,that is,from the incentive to the labor force.The investment of economic individuals in their own productivity mainly comes from the expectation of the return of investment,that is,the expected probability of the change of social stratum brought by human capital investment.The higher the probability,the higher the individual's effort and investment level,and vice versa.Thirdly,this paper points out that social mobility affects economic growth through education.This paper takes the change of intergenerational educational level as the proxy variable of social mobility.By collecting the micro-survey data of various countries in the world,the objective level of social mobility is measured by the least squares method.According to the subjective perception of opportunity equity provided by society in the micro-survey data of different countries,the subjective perception of social mobility is regarded as the proxy variable of social mobility perception.Using the per capita GNP and economic growth rate of each country as the proxy variable of economic growth,this paper constructs the basic econometric model of the article.Based on the data of general social survey in the United States,this paper constructs a time series and studies the relationship among social mobility,social mobility perception and economic growth by using vector autoregressive model.It is found that30% of the fluctuation of economic growth comes from the fluctuation of social mobility.The influence of the fluctuation of social mobility perception level on the fluctuation of economic growth shows a growing trend.This paper constructs mixed-time cross-sectional data based on European social survey data,and finds that the impact of social mobility on economic growth is influenced by cultural environment and the level of economic development of the country.Finally,based on the results of econometric analysis,this paper puts forward policy recommendations to encourage labor force and develop education.