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.
Daron Acemoglu, Simon Johnson, Amir Kermani, James Kwak and Todd Mitton have written a paper on whether firms connected to Timothy Geithner benefited from these connections. They do so by looking at how stocks of these firms reacted to the announcement that he was a nominee for Treasury Secretary in November 2008. They find that there were large abnormal returns for connected firms. Below is the paper's abstract and the full paper is available here . The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner's confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small ne...