ERC grants 20 Million SEK for research on Increased Social Mobility

Arash Nekoei, Associate Professor at IIES, Institute for International Economic Studies, Stockholm University Photo: Hanna Weitz/Stockholm University

“A society where individuals can pursue their dreams, striving to become whatever they desire, excels both in efficiency and equity. However, throughout history, following parents' occupations was the norm, changing social class an exception. The question remains: what caused the increase in social mobility? My research program aims to answer these questions with three interconnected projects, says Arash Nekoei, Associate Professor at the Institute for International Economic Studies (IIES) at Stockholm University.

Together, the projects, that are including experts across Stockholm University, for example Jósef Sigurdsson, associate professor of economics and Torsten Håkansson at the Stockholm University Library, build micro-founded connections between mobility, inequality, and growth.

”The drivers of mobility we uncover may bolster both mobility and growth, challenging the traditional efficiency and equity trade-off,” says Arash Nekoei.

• Project I tackles the main obstacle to studying mobility: the availability of long-run individual-level panel data of parents and children.
  
  ”Digitizing an overlooked series of historical books, I will build a unique dataset of incomes and occupations of the universe of Swedish taxpayers since 1905, matched with panel data of firms with their revenue, payroll, and top executives since 1857. The novelty lies in the universal coverage of data, spanning the birth of prosperous, innovative, and inclusive Sweden with an advanced welfare state,” says Arash Nekoei.
   
• Project II leverages this comprehensive dataset to establish stylized facts about mobility in labor and capital incomes, as well as in occupation and entrepreneurship.
  
  ”They will shed light on the long-run patterns of mobility and its associations with inequality and growth, resolve long-standing controversies, and bring new insights into the debate,” says Arash Nekoei.
   
• Project III develops a novel theoretical model of mobility that uncovers the drivers of mobility.
  
  ”The model shows that social mobility is driven by the tension between opportunities for social climbers to access physical and human capital and the privileges of the elite to hinder such access. We exploit quasi-experimental evidence to test this theory, using the expansion of private banks and public education, as well as the rise and fall of progressive taxation,” says Arash Nekoei.

About Arash Nekoei

Arash Nekoei's research focuses on labor and public economics, particularly unemployment, immigration, and inequality. Arash’s empirical findings show, for example, that unemployment benefits help workers find higher-paying jobs and that an immigrant’s decisions are influenced in real-time by the economy of their home country. His research uses theoretical models to connect such empirical findings to help shape better policies.

Arash began his undergraduate studies in mathematics at Sharif University of Technology in Tehran, before moving to France, where he earned his diplôme d'Ingénieur with a focus on applied mathematics from Ecole Polytechnique. After working as a development consultant in Afghanistan, he returned to academia and earned his Masters and Ph.D. from Harvard University.

Learn more about Arash Nekoei's research

About ERC Consolidator Grants

The European Research Council (ERC) is awarding its 2024 Consolidator Grants to 328 researchers. The total funding of 678 million euros aims to support outstanding researchers early in their careers, during the establishment phase where independence is crucial for shaping competent research teams and developing promising scientific ideas. The funding is provided through the EU’s Horizon Europe program.

Learn more about ERC Consolidator Grants