STRUCTURE OF OCCUPATIONAL MOBILITY IN SINGAPORE

Abstract

This thesis contributes to the study of intergenerational mobility both empirically and theoretically. Empirically, I provide evidence which supports the hypothesis that transmission of occupational status is class-specific. Education level of parents who are professionals affect occupational choice of their children but education level of working class parents does not. The analysis on preferences of qualities for children also provides interesting findings. Respondents whose parents are professionals view being considerate as an important quality while children of working class parents see gender role as important quality a child should possess. I also compute a transition matrix which shows that upward mobility is greater than downward mobility, reflecting a structural change of the Singapore economy. Theoretically, I develop two models to explain the empirical findings. In both models, occupational class is endogenous, agents are heterogeneous and transmission of attitudes to their children is class-specific, a novelty not explored by the existing literature. My first model illustrates the case for Singapore. The level of human capital determines occupation choice. I use this model to evaluate some policies pertaining to the Singapore economy. In my second model, I incorporate human capital, h, and unit psychological cost of exerting a unit of entrepreneurial effort, x. These two forms of human capital are different in nature. It is more likely the case that unit psychological cost, x, is a more critical factor for a successful entrepreneur while a high human capital, h, is more important to a professional or skilled worker.