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Economics

Measuring Intergenerational Mobility Across Income Distributions

Quick fact

In countries like Denmark and Canada, the rank-rank correlation between parents' and children's income is around 0.15–0.20, while in the United States it is closer to 0.34–0.50, meaning that the US has significantly lower intergenerational mobility.

Why this is interesting

Think about your own income compared to your parents'—is it sheer luck or a predictable pattern? Economists can actually measure how much of your economic destiny is determined by the family you're born into.