The Great Gatsby curve
The Great Gatsby Curve illustrates the relationship between income inequality and social mobility. It suggests that in societies with high income inequality, like the United States, it is more difficult for individuals to move up the economic ladder compared to countries with lower inequality, such as the Nordic countries. This means that if a society has significant wealth gaps, children from poorer families are less likely to improve their economic status as adults. In essence, high inequality often hinders the opportunities for social and economic advancement.
Additional Insights
-
The Great Gatsby Curve illustrates the relationship between income inequality and social mobility. It suggests that in societies with high income inequality, people are less likely to improve their economic status compared to their parents. In contrast, countries with lower inequality tend to have higher levels of social mobility, allowing individuals from less affluent backgrounds to succeed. Essentially, the curve highlights how unequal wealth distribution can hinder opportunities for advancement, reinforcing the idea that a fairer economic landscape enables greater chances for all individuals to rise, regardless of their starting point.