Families and governments are the primary sources of investment in children, providing access to basic resources and other developmental opportunities. Recent research identifies significant class gaps in parental investments that contribute to high levels of inequality by family income and education. State-level public investments in children and families have the potential to reduce class inequality in children's developmental environments by affecting parents' behavior. Using newly assembled administrative data from 1998-2014, linked to household-level data from the Consumer Expenditure Survey, we examine how public sector investment in income support, health and education is associated with the private expenditures of low and high-SES parents on developmental items for children. Are class gaps in parental investments in children narrower in contexts of higher public investment for children and families? We find that more generous public spending for children and families is associated with significantly narrower class gaps in private parental investments. Moreover, we find that equalization is driven by bottom up increases in low-SES households' developmental spending in response to the progressive state investments of income support and health, and by top down decreases in high-SES households' developmental spending in response to the universal state investment of public education.
Intergenerational social mobility has immense implications for individuals' well-being, attitudes, and behaviors. However, previous methods may be unreliable for estimating heterogeneous mobility effects, especially in the presence of moderate- or large-scale intergenerational mobility. We propose an improved method, called the "mobility contrast model" (MCM). Using simulation evidence, we demonstrated that the MCM is more flexible and reliable for estimating and testing heterogeneous mobility effects, and the results are robust to the scale of intergenerational mobility. We revisited the debate about the effect of mobility on fertility and analyzed data from the 1962 Occupational Changes in a Generation Study (OCG-1) and more recent data from the 1974 through 2018 General Social Survey (GSS) using both previous models and the MCM. The MCM suggested a small association between fertility and occupational mobility in the GSS data but substantial and heterogeneous educational mobility effects on fertility in the OCG-1 and the GSS. Such effects were difficult to pinpoint using previous methods because mobility effects of different magnitudes and opposite directions among mobility groups may cancel out. The new method can be extended to investigate the effect of intergenerational mobility across multiple generations and other research areas including immigrant assimilation and heterogamy.