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Cross-Country Intergenerational Status Mobility: Is there a Great Gatsby Curve?

In: Economic Well-Being and Inequality: Papers from the Fifth ECINEQ Meeting

Author

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  • John A. Bishop
  • Haiyong Liu
  • Juan Gabriel Rodríguez

Abstract

Countries with greater income inequality also tend to have less intergenerational mobility. This relationship, as referred by Krueger (2012), is called “The Great Gatsby Curve.” Criticisms on this curve have brought to notice several limitations of previous studies: a few number of observations; short gap of time between measured inequality and immobility; heterogeneous databases; and model-based estimates of immobility. To correct for some of these limitations, we test for the impact of past income inequality on intergenerational social status persistence using the International Social Survey Program (2009). In accordance with previous studies, we find a positive relationship between these two variables, though the relatively poor model fit suggests the presence of other factors. In this respect, we find that past economic freedom has a negative and significant impact on social status persistence, while previous growth is not significant.

Suggested Citation

  • John A. Bishop & Haiyong Liu & Juan Gabriel Rodríguez, 2014. "Cross-Country Intergenerational Status Mobility: Is there a Great Gatsby Curve?," Research on Economic Inequality, in: Economic Well-Being and Inequality: Papers from the Fifth ECINEQ Meeting, volume 22, pages 237-249, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-258520140000022007
    DOI: 10.1108/S1049-258520140000022007
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    Citations

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    Cited by:

    1. Lijie Song, 2022. "Examining the Relationship Between Intergenerational Upward Mobility and Inequality: Evidence from Panel Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 1-27, August.
    2. Juan C. Palomino & Gustavo A. Marrero & Juan G. Rodríguez, 2018. "One size doesn’t fit all: a quantile analysis of intergenerational income mobility in the U.S. (1980–2010)," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(3), pages 347-367, September.

    More about this item

    Keywords

    Intergenerational mobility; income inequality; I3; D3;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • D3 - Microeconomics - - Distribution

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