This paper uncovers differences in social mobility between rich and poor families. The paper shows, in particular, that borrowing constraints retard social mobility among the poor by preventing poor parents from investing optimally in the their children's human capital. This evidence contradicts...

The model presented in the paper generates important implications concerning how the allocation of resources between children varies across income groups. In the model, poor and middle-income families tend to channel their resources into a few children whereas rich families (and perhaps very...

The model presented in the paper generates important implications concerning how the allocation of resources between children varies across income groups. In the model, poor and middle-income families tend to channel their resources into a few children whereas rich families (and perhaps very...