Intergenerational influences of wealth in Mexico

Using the 2006 Mexican Social Mobility Survey, this article evaluates the influence of parental wealth on several outcomes of adult children, including educational attainment, consumption level, asset holdings, home ownership, and home value. Three main findings emerge from the analysis. First, parental wealth is a strong determinant of educational attainment, net of the standard indicators of socioeconomic advantage. Furthermore, the influence of parental wealth appears to be stronger among the most disadvantaged children-those with low cultural capital residing in rural areas. Second, the mechanism of parental influence on adult children's economic well-being differs depending on the outcome: in the case of consumption level, the influence is largely indirect, mediated by offspring's human capital, while the opposite is true for children's asset holdings, where a direct transfer of resources predominates. Third, access to homeownership is only weakly stratified by economic resources, but parental wealth significantly affects home value. The findings here highlight the critical but largely neglected impact of wealth on inequality and mobility in Latin America.