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Inequality from Generation to Generation: The United States in Comparison

Author

Listed:
  • Corak, Miles

    (CUNY Graduate Center)

Abstract
To understand the degree of intergenerational mobility in the United States, and the differences between Americans and others, it is important to appreciate the workings and interaction of three fundamental institutions: the family, the market, and the state. But comparisons can also be misleading. The way in which families, labor markets, and government policy determine the life chances of children is complicated; the result of a particular history, societal values, and the nature of the political process. It might be one thing to say that the United States has significantly less intergenerational mobility than Denmark or Norway, but it is entirely another thing to suggest that these countries offer templates for the conduct of public policy that can be applied on this side of the Atlantic. There is no way to get from here to there. It is helpful to focus on a particularly apt comparison, that between the United States and Canada, in order to illustrate how the configuration of the forces determining the transmission of inequality across generations differs in spite of the fact that both of these countries share many other things in common, particularly the importance and meaning of equality of opportunity and the role of individual hard work and motivation.

Suggested Citation

  • Corak, Miles, 2016. "Inequality from Generation to Generation: The United States in Comparison," IZA Discussion Papers 9929, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9929
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    File URL: https://docs.iza.org/dp9929.pdf
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    References listed on IDEAS

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    1. Miles Corak, 2006. "Do Poor Children Become Poor Adults? Lessons from a Cross-Country Comparison of Generational Earnings Mobility," Research on Economic Inequality, in: Dynamics of Inequality and Poverty, pages 143-188, Emerald Group Publishing Limited.
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    8. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-429, June.
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    Cited by:

    1. Christopher Hoy & Russell Toth, 2019. "A false divide? Correcting beliefs about inequality aligns preferences for redistribution between right and left-wing voters," Working Papers 494, ECINEQ, Society for the Study of Economic Inequality.
    2. Lukas Bolte & Nicole Immorlica & Matthew O. Jackson, 2020. "The Role of Referrals in Immobility, Inequality, and Inefficiency in Labor Markets," Papers 2012.15753, arXiv.org.
    3. Blanchard, Emily & Willmann, Gerald, 2022. "Unequal gains, prolonged pain: A model of protectionist overshooting and escalation," Journal of International Economics, Elsevier, vol. 135(C).
    4. Schwaiger, Rene & Huber, Jürgen & Kirchler, Michael & Kleinlercher, Daniel & Weitzel, Utz, 2022. "Unequal opportunities, social groups, and redistribution: Evidence from Germany," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 100(C).
    5. Czarny Bogusław & Czarny Elżbieta, 2021. "Efficiency and equity – The Swedish economy in comparison to other countries at the beginning of the 21st century," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 57(3), pages 255-267, September.
    6. Irene Brunetti & Davide Fiaschi, 2023. "Occupational mobility: theory and estimation for Italy," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 21(3), pages 641-661, September.
    7. Kenedi, Gustave & Sirugue, Louis, 2023. "Intergenerational income mobility in France: A comparative and geographic analysis," Journal of Public Economics, Elsevier, vol. 226(C).
    8. Dang, Dong Quang & Wu, Weiou & Korkos, Ioannis, 2024. "Stock market and inequality distributions – Evidence from the BRICS and G7 countries," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1172-1190.
    9. Anuradha Singh, 2021. "Regional disparities in Social Mobility of India," Papers 2108.08816, arXiv.org.
    10. Carlos Góes, 2016. "Testing Piketty’s Hypothesis on the Drivers of Income Inequality: Evidence from Panel VARs with Heterogeneous Dynamics," IMF Working Papers 2016/160, International Monetary Fund.
    11. Manoel Bittencourt & Shinhye Chang & Rangan Gupta & Stephen M. Miller, 2018. "Does Financial Development Affect Income Inequality in the U.S. States? A Panel Data Analysis," Working Papers 201803, University of Pretoria, Department of Economics.
    12. Aboozar Hadavand, 2017. "Misperceptions and mismeasurements: An analysis of subjective economic inequality," Working Papers 449, ECINEQ, Society for the Study of Economic Inequality.
    13. Christine Mayrhuber & Rainer Eppel & Thomas Horvath & Helmut Mahringer, 2020. "Destandardisierung von Erwerbsverläufen und Rückwirkungen auf die Alterssicherung," WIFO Studies, WIFO, number 66001, August.
    14. Okamoto, Akira, 2022. "Intergenerational earnings mobility and demographic dynamics: Welfare analysis of an aging Japan," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 76-104.
    15. David Salomón Aké-Uitz, 2023. "Did the expansion of educational supply at higher education promote intergenerational social mobility in Mexico?/¿La expansión de la oferta educativa en la educación superior promovió la movilidad," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 38(1), pages 103-142.
    16. Christopher Hoy & Russell Toth & Nurina Merdikawati, 2024. "A false divide? Providing information about inequality aligns preferences for redistribution between right- and left-wing voters," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(3), pages 669-707, September.
    17. Carmichael, Fiona & Darko, Christian K. & Ercolani, Marco G. & Ozgen, Ceren & Siebert, W. Stanley, 2020. "Evidence on intergenerational income transmission using complete Dutch population data," Economics Letters, Elsevier, vol. 189(C).
    18. N. Cordemans, 2019. "Inclusive growth: a new societal paradigm?," Economic Review, National Bank of Belgium, issue i, pages 29-50, June.
    19. Christian H Ebeke, 2023. "Intergenerational Mobility and the Growth–Inequality–Poverty Nexus in Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 32(Supplemen), pages 99-112.
    20. Aiyar, Shekhar & Ebeke, Christian, 2020. "Inequality of opportunity, inequality of income and economic growth," World Development, Elsevier, vol. 136(C).
    21. Bittencourt, Manoel & Chang, Shinhye & Gupta, Rangan & Miller, Stephen M., 2019. "Does financial development affect income inequality in the U.S. States?," Journal of Policy Modeling, Elsevier, vol. 41(6), pages 1043-1056.
    22. Giorgio Calcagnini & Edgar J. Sanchez Carrera & Rosalba Rombaldoni, 2019. "EClustering Democracy and Inequality," Working Papers 1906, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2019.
    23. Anuradha Singh, 2021. "Income Inequality and Intergenerational Mobility in India," Papers 2107.12702, arXiv.org.
    24. Rene Schwaiger & Jürgen Huber & Michael Kirchler & Daniel Kleinlercher & Utz Weitzel, 2020. "Unequal Opportunities, Social Groups, and Redistribution: Evidence from the General Population," Working Papers 2020-26, Faculty of Economics and Statistics, Universität Innsbruck.

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    More about this item

    Keywords

    equality of opportunity; intergenerational mobility;

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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