Inequality from Generation to Generation: The United States in Comparison

16 Pages Posted: 1 Jun 2016

See all articles by Miles Corak

Miles Corak

Statistics Canada; University of Ottawa; IZA Institute of Labor Economics

Abstract

To understand the degree of intergenerational mobility in the United States, and the differences between Americans and others, it is important to appreciate the workings and interaction of three fundamental institutions: the family, the market, and the state. But comparisons can also be misleading. The way in which families, labor markets, and government policy determine the life chances of children is complicated; the result of a particular history, societal values, and the nature of the political process. It might be one thing to say that the United States has significantly less intergenerational mobility than Denmark or Norway, but it is entirely another thing to suggest that these countries offer templates for the conduct of public policy that can be applied on this side of the Atlantic. There is no way to get from here to there.It is helpful to focus on a particularly apt comparison, that between the United States and Canada, in order to illustrate how the configuration of the forces determining the transmission of inequality across generations differs in spite of the fact that both of these countries share many other things in common, particularly the importance and meaning of equality of opportunity and the role of individual hard work and motivation.

Keywords: equality of opportunity, intergenerational mobility

JEL Classification: J62, J68

Suggested Citation

Corak, Miles, Inequality from Generation to Generation: The United States in Comparison. IZA Discussion Paper No. 9929. Available at SSRN: https://ssrn.com/abstract=2786013

Miles Corak (Contact Author)

Statistics Canada ( email )

Family and Labour Studies
Ottawa, Ontario K1A 0T6
Canada
613-951-9047 (Phone)
613-951-5403 (Fax)

University of Ottawa

2292 Edwin Crescent
Ottawa, Ontario K2C 1H7
Canada

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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