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Income inequality and social origins

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  • Lorenzo Cappellari

    (Università Cattolica Milano, Italy, and IZA, Germany)

Abstract

Income inequality has been rising in many countries. Is this bad? One way to decide is to look at the change in incomes across generations (intergenerational mobility) and, more generally, at the extent to which income differences among individuals are traceable to their social origins. Inequalities that reflect factors largely out of one’s control—such as local schools and communities—require attention in order to reduce income inequality. Evidence shows a negative association between income inequality and intergenerational mobility. The debate on whether community effects exert additional effects is still open.

Suggested Citation

  • Lorenzo Cappellari, 2016. "Income inequality and social origins," IZA World of Labor, Institute of Labor Economics (IZA), pages 261-261, May.
    • Handle: RePEc:iza:izawol:journl:y:2016:n:261
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    More about this item

    Keywords

    income inequality; intergenerational mobility; social origins; Great Gatsby curve;
    All these keywords.

    JEL classification:

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

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