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Inequality of Opportunity in Times of Rising Global Inequality: USA vs. Switzerland

Author

Listed:
  • Bühler, Jonas

    (Institute for Swiss Economic Policy at the University of Lucerne)

  • Davis, Jonathan

    (University of Oregon)

  • Häner-Müller, Melanie

    (Institute for Swiss Economic Policy at the University of Lucerne)

  • Mazumder, Bhashkar

    (University of California, Irvine)

  • Schaltegger, Christoph

    (Institute for Swiss Economic Policy at the University of Lucerne)

Abstract

We provide a comparative analysis of inequality of opportunity for children’s future success in Switzerland and the United States during an era of rising global inequality. Leveraging Swiss administrative earnings data and U.S. survey data, we estimate sibling correlations for cohorts entering the labor market in the early 1970s and early 1980s in the two countries. We find a sharp rise in sibling correlations and income inequality in the United States during the 1980s similar to Davis & Mazumder (2026) who study intergenerational income mobility. However, we find that both inequality and inequality of opportunity in Switzerland remained remarkably stable. Sibling correlations in long-run income consistently hovered below 15% across both cohorts in Switzerland, whereas in the United States they nearly doubled, from 15.4% to 30.6%. These findings thus position Switzerland as a salient counterfactual to the U.S. case.

Suggested Citation

  • Bühler, Jonas & Davis, Jonathan & Häner-Müller, Melanie & Mazumder, Bhashkar & Schaltegger, Christoph, 2026. "Inequality of Opportunity in Times of Rising Global Inequality: USA vs. Switzerland," IZA Discussion Papers 18764, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18764
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    Keywords

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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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