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Lessons for Americans from Denmark about inequality and social mobility

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  • Heckman, James
  • Landersø, Rasmus

Abstract

Many progressive American policy analysts point to Denmark as a model welfare state with low levels of income inequality and high levels of income mobility across generations. It has in place many social policies now advocated for adoption in the U.S. Despite generous Danish social policies, family influence on important child outcomes in Denmark is about as strong as it is in the United States. More advantaged families are better able to access, utilize, and influence universally available programs. Purposive sorting by levels of family advantage create neighborhood effects. Powerful forces not easily mitigated by Danish-style welfare state programs operate in both countries.

Suggested Citation

  • Heckman, James & Landersø, Rasmus, 2022. "Lessons for Americans from Denmark about inequality and social mobility," Labour Economics, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:labeco:v:77:y:2022:i:c:s0927537121000348
    DOI: 10.1016/j.labeco.2021.101999
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    Cited by:

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    2. Zhang, Xinmiao & Deguilhem, Thibaud, 2022. "Climbing the Social Ladder: Does Intergenerational Solidarity matter?," MPRA Paper 115241, University Library of Munich, Germany.
    3. Dora Costa & CoraLee Lewis & Noelle Yetter, 2022. "Children and Grandchildren of Union Army Veterans: New Data Collections to Study the Persistence of Longevity and Socioeconomic Status Across Generations," NBER Working Papers 30747, National Bureau of Economic Research, Inc.
    4. Zheng, Qi & Xie, Xin & Ye, Xiaoyang & Wei, Yi, 2024. "Do teachers colleges prepare more effective teachers? Evidence from a top school district in China," China Economic Review, Elsevier, vol. 87(C).
    5. Eshaghnia, Sadegh S. M. & Heckman, James J. & Razavi, Goya, 2023. "Pricing Neighborhoods," IZA Discussion Papers 16234, Institute of Labor Economics (IZA).
    6. Foged, Mette & Hasager, Linea & Peri, Giovanni & Arendt, Jacob Nielsen & Bolvig, Iben, 2023. "Intergenerational spillover effects of language training for refugees," Journal of Public Economics, Elsevier, vol. 220(C).
    7. Fjaellegaard Jensen, Mathias & Manning, Alan, 2022. "Background matters, but not whether parents are immigrants: outcomes of children born in Denmark," LSE Research Online Documents on Economics 118005, London School of Economics and Political Science, LSE Library.
    8. Trung V Vu, 2023. "Long-term relatedness and income distribution: understanding the deep roots of inequality," Oxford Economic Papers, Oxford University Press, vol. 75(3), pages 704-728.
    9. Hirshman, Samuel D. & Willén, Alexander, 2022. "Does Increasing Risk Widen Gender Gaps?," Discussion Paper Series in Economics 20/2022, Norwegian School of Economics, Department of Economics.

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    More about this item

    Keywords

    Inequality; Social mobility; Family influence; Power of place;
    All these keywords.

    JEL classification:

    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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