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Uncovering Gatsby Curves

Author

Listed:
  • Pier-André Bouchard St-Amant
  • Jean-Denis Garon
  • Nicolas Marceau

Abstract

Empirical findings suggest a positive correlation between inequality and social immobility, a phenomenon coined the Gatsby curve. However, complete explanations of the phenomenon have not yet been proposed. This paper answers two questions: What are Gatsby curves? When do they exist? We build a theoretical environment in which parental investment and education improve the economic prospects of children. Gatsbian economies and Gatsby curves are formally defined, and we characterize the conditions under which they will arise. We show that an economy may go from being Gatsbian to non-Gatsbian. Finally, we show that the better network of relations of those with high-paying jobs may also generate a Gatsbian economy.

Suggested Citation

  • Pier-André Bouchard St-Amant & Jean-Denis Garon & Nicolas Marceau, 2020. "Uncovering Gatsby Curves," CESifo Working Paper Series 8049, CESifo.
    • Handle: RePEc:ces:ceswps:_8049
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    References listed on IDEAS

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    Cited by:

    1. Marie Connolly & Catherine Haeck & Lucie Raymond-Brousseau, 2022. "La mobilité sociale au Québec selon différents parcours universitaires," CIRANO Project Reports 2022rp-12, CIRANO.

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    More about this item

    Keywords

    intergenerational mobility; income inequality; education;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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