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Economics

The Dynamics of Intergenerational Social Mobility

Quick fact

Societies with higher income inequality tend to have lower intergenerational mobility—a relationship captured by the 'Great Gatsby Curve.' In the US, nearly 50% of a father’s income advantage (or disadvantage) is passed on to his son, a rate far higher than in countries like Denmark.

Why this is interesting

Imagine growing up in a poor family and wondering if you will be richer than your parents by age 30. How much of your future income is already written by the circumstances of your birth?