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Economic development and inequality of opportunity: Kuznets meets the Great Gatsby?

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  • Francisco H.G. Ferreira
  • Domenico Moramarco
  • Vitorocco Peragine

Abstract

According to the Kuznets hypothesis, inequality first tends to increase and then decrease as a country develops. Whether borne out empirically, this inverted-U Kuznets curve, as a stylized 'fact', has shaped the discourse on economic development and income inequality for decades. In this paper we investigate whether a similar relationship holds between national income per capita and inequality of opportunity: the inequality associated with inherited individual circumstances such as gender, ethnicity, and family background.

Suggested Citation

  • Francisco H.G. Ferreira & Domenico Moramarco & Vitorocco Peragine, 2025. "Economic development and inequality of opportunity: Kuznets meets the Great Gatsby?," WIDER Working Paper Series wp-2025-25, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2025-25
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    References listed on IDEAS

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    1. Ferreira, Francisco & Peragine, Vito & Brunori, Paolo & Salas-Rojo, Pedro & Moramarco, Domenico & Barajas, Luis & Barbieri, Teresa & Daza-Baez, Nancy & Datt, Gaurav & de Sandi, Vito & Farella, Fabio &, 2026. "Global Estimates of Opportunity and Mobility: A Database," IZA Discussion Papers 18367, IZA Network @ LISER.

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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