Economic Inequality and the Family

While the state plays a central role in shaping income distribution, other institutions—particularly the family—can either increase or reduce inequality. The family serves as the cornerstone of early development and socialization, providing essential support until individuals reach independence and take on roles as citizens, workers, and parents. This chapter examines how families contribute to the persistence of unacceptable inequality through distinct yet interconnected channels. Inheritance entrenches intergenerational advantage by concentrating wealth and resources within privileged lineages. Educational opportunities—especially during early childhood—are critical to long-term outcomes. Research highlights stark disparities: applicants to Ivy League schools from the top 1% of households are twice as likely to gain admission as their middle-class peers with identical academic records. Parenting styles and home environments further amplify inequality beyond childhood, influencing adolescents’ and young adults’ futures through access to networks, emotional support, and cultural capital. In sum, economic disparities within families play a powerful role in shaping life trajectories, illustrating that intolerable inequality often begins at home.