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Economics

Longitudinal Analysis of Intergenerational Income Mobility Across OECD Countries

Quick fact

In the OECD, the United States has an intergenerational income elasticity of about 0.47, meaning a child born into a family with income 100% above the average tends to earn about 47% more than average as an adult—while in Denmark the elasticity is only around 0.15, suggesting far more mobility.

Why this is interesting

You might think that in rich countries like the US, a child's future income depends mostly on their own talents. But if you compare across OECD countries, the surprising truth is that where you grow up may matter just as much as what you do.