Mulligan theory (economics)

Mulligan theory in economics suggests that some individuals may experience ongoing disadvantages from past events—like poor health, lost opportunities, or limited education—that continue to affect their economic outcomes even after the initial cause is gone. The theory argues that these disadvantages can create persistent income gaps and social inequalities, which are not just temporary setbacks but long-term barriers. Essentially, it highlights how personal histories and accumulated disadvantages can shape economic mobility, emphasizing the importance of considering past experiences when analyzing income and wealth disparities.