How mobile is our society? Do parental characteristics explain their child's social outcomes? How easy is it for someone to get ahead if their parents are at the bottom of the social ladder? In a fascinating study, Neil Cummins and Greg Clark investigate social mobility in England over 800 years using surname evidence. The BBC have reported on the study here. Clark and Cummins find that social mobility is a lot lower than we previously thought and appears to be immune to government attempts at making society more mobile. Greg Clark has performed surname studies for other economies and has found similar results - see here.
My colleague and former PhD student Gareth Campbell has created a website about the British Railway Mania - click here . This episode has been described by the Economist as probably the greatest bubble in human history. Gareth's website provides background on the Mania and posits some explanations for the 'bubble'. In his explanation of why the bubble happened, Gareth places a lot of emphasis on investor myopia regarding future dividends and uncalled capital. His study of investors during the episode does not support the view that this episode was fuelled by naive and irrational investors.
