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The dynamics of the 'Great Gatsby Curve' and a look at the curve during the Great Gatsby era

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Listed:
  • Diego Battiston
  • Stephan Maurer
  • Andrei Potlogea
  • José V. Rodríguez Mora

Abstract

We use linked historical US censuses to study the empirical relationship between inequality and intergenerational mobility. We first confirm that the 'Great Gatsby Curve' already existed in the early 20th century. We then study a 'dynamic' version of the curve that relates changes in equality to changes in intergenerational mobility. Interestingly, we find that this relationship varies over two-decade periods for income but remains consistent for education. Finally, we propose novel unitless measures of intergenerational mobility and inequality to show that the 'Great Gatsby Curve' result re-emerges over the long run, for the period 1920 to 2011.

Suggested Citation

  • Diego Battiston & Stephan Maurer & Andrei Potlogea & José V. Rodríguez Mora, 2023. "The dynamics of the 'Great Gatsby Curve' and a look at the curve during the Great Gatsby era," CEP Discussion Papers dp1928, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepdps:dp1928
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    References listed on IDEAS

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    More about this item

    Keywords

    intergenerational mobility; inequality; 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
    • N12 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: 1913-
    • N52 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: 1913-
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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