Great Gatsby and the Global South: Intergenerational Mobility, Income Inequality, and Development

In the Global South, intergenerational economic mobility is a significant research topic with policy implications, particularly regarding the persistence of inequality. This Element surveys the literature, presents a new estimate for Indonesia, discusses the Great Gatsby Curve, and highlights the differences between developed and developing countries. It also offers a theoretical framework to explain the drivers of mobility and inequality.

Format: Paperback / softback
Length: 75 pages
Publication date: 20 July 2023
Publisher: Cambridge University Press

In the Global South, the study of economic mobility across generations, or intergenerational economic mobility, holds significant importance for research and policy. It delves into the persistence or otherwise of inequality, as mobility revolves around the degree to which children's economic outcomes are influenced by their parents' economic outcomes. Scholars have conducted extensive estimates of intergenerational mobility in developed countries, while fewer estimates exist for developing countries due to the starker differences in living standards. This Element provides a comprehensive survey of the topic, both conceptually and empirically. It presents a new estimate for a developing country, specifically Indonesia, and discusses the concept of the "Great Gatsby Curve." It also highlights the differing positions of developed and developing countries in terms of mobility. Finally, it presents a theoretical framework to explain the drivers of mobility and the varying degrees of inequality across time. This title is also available as Open Access on Cambridge Core.

Economic mobility across generations, or intergenerational economic mobility, is a crucial topic of research in the Global South, with far-reaching implications for policy. It explores the extent to which inequality persists or changes over time, considering the relationship between the economic outcomes of parents and their children. Scholars have conducted extensive estimates of intergenerational mobility in developed countries, while fewer data are available for developing nations due to the significant differences in living standards.

In this Element, we provide a comprehensive survey of the topic, covering both conceptual and empirical aspects. We present a new estimate for a developing country, Indonesia, to illustrate the dynamics of intergenerational mobility. We also discuss the concept of the "Great Gatsby Curve," which captures the relationship between income inequality and mobility. Furthermore, we highlight the contrasting positions of developed and developing countries regarding intergenerational mobility.

To better understand the drivers of mobility and inequality, we develop a theoretical framework that considers factors such as education, social policies, and economic institutions. This framework aims to shed light on the mechanisms that influence economic outcomes and the persistence or change in inequality across generations.

Intergenerational economic mobility is a complex issue that requires a multi-faceted approach. By examining the experiences of different countries and regions, we can gain insights into the factors that promote or hinder mobility and inequality. This knowledge can inform policy interventions and strategies aimed at promoting social mobility and reducing economic disparities.

In conclusion, intergenerational economic mobility is a vital area of research in the Global South, with significant implications for policy and society. By understanding the drivers of mobility and inequality, we can work towards creating a more equitable and prosperous future for all.

ISBN-13: 9781009382724