The fall in absolute intergenerational mobility: consequences for subjective well-being

Abstract

Absolute intergenerational income mobility, defined as the fraction of individuals earning more than their parents, has been declining rapidly in rich countries over the past three decades. This chapter investigates whether this decline in absolute mobility is related to changes in subjective well-being—a facet of social sustainability—in eight wealthy nations. A positive relationship is expected if parents’ income serves as a reference point for expectations or through the effects of decreased economic growth and increased inequality, which drive the decline in mobility. However, our findings do not indicate a significant association between these variables. We explore potential explanations for this lack of correlation. Notably, while reduced economic growth rates primarily drive the decline in absolute mobility, our results do not suggest that material conditions are irrelevant to subjective well-being. Within the context of ageing welfare states, projections of slow economic growth alongside an ageing population suggest that low rates of absolute mobility will persist. Based on our findings, we argue that this issue is not a primary concern for social sustainability.

Publication Information

Juuti, T. & Kanninen, O. (2025), The fall in absolute intergenerational mobility: consequences for subjective well-being, In Vaalavuo, M., Nelson, K. & Kuitto, K. (Eds.), Social Sustainability in Ageing Welfare States, 4, 78–97.

• ISBN: 9781035318360 (Print), 9781035318377 (Online)