Inequality and Mobility

Inequality and Mobility • By John Hassler, Jose V. Rodriguez Mora, and Joseph Zeira, Journal of Economic Growth, 2007.

• Main results: • If countries differ by levels of public education inequality and mobility are negatively related.

• If countries differ by productivity, or labor market institutions, inequality and mobility are positively related.

The Full Gatsby Curve 0.8

0.7 0.67 0.6

0.6 0.5

0.5 0.46 IGE

0.4 0.34

0.2 0.15

0.44

0.4

0.29

0.27

0.49

0.47

0.32

0.3

0.52

0.5

0.46

0.41

0.58

0.32

0.26 0.19

0.18 0.17

0.1

0 20.0

25.0

30.0

35.0

40.0

45.0 Gini

50.0

55.0

60.0

65.0

The Gatsby Curve without Developing Countries 0.6

0.5

IGE

0.4

0.3

0.2

0.1

0 20.0

25.0

30.0

35.0

Gini

40.0

45.0

The Gatsby Curve without Developing Countries and Scandinavian Countries 0.6

0.5

IGE

0.4

0.3

0.2

0.1

0 20.0

25.0

30.0

35.0

Gini

40.0

45.0