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Joined: 26 May 2020
Location: China
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Posts: 64
Posted: 27 May 2020 at 11:00 | IP Logged Quote xysoom

Countries where intergenerational income mobility is
better than US

The American Dream might be more obtainable in several
countries outside the US. The Organisation for Economic
Co-operation and Development released a report in 2018
where it took an in-depth look at social mobility across
countries.One of the report's findings was the varying
number of generations it would take someone born in a
low-income family to reach the country's average income;
for the US, it would take about five generations.That was
a longer time than several other wealthy countries.Visit
Business Insider's homepage for more stories.The American
Dream of your children being more successful than you are
might be more attainable in other parts of the world than
in the US.To get more news about
WikiFX, you can visit
WikiFX news official website.
¡¡¡¡The Organisation for Economic Co-operation and
Development figured out how long it would take low-income
families to get to their country's average income, based
on intergenerational income elasticity. That is, it
measured how much children's' incomes depended on their
parents' incomes. On average among the 30 countries
studied by the OECD, it will take four to five
generations of children from a low-income family ¡ª
families part of the bottom 10% of income distribution ¡ª
to reach the average income in their country, according
to the OECD's report on social mobility in 2018. The US
is on par with that average, taking five generations for
someone born into a low-income family to reach the
nation's average income. One of the findings from the
OECD's report is that social mobility for earnings,
education, and occupation is high in most Nordic
countries. In many of those countries, it would take
fewer generations for a low-income family to reach their
country's average income.These statistics are similar to
findings in a 2018 report on economic mobility from the
World Bank, which found that there are lots of high-
income countries where the American Dream is more
attainable than in the US.
¡¡¡¡Income inequality plays an important factor in
intergenerational income mobility. The report said low-
income families in low-inequality and high-mobility
countries would take almost four generations to reach the
average income. In contrast, high-inequality and low-
mobility countries, which are typically emerging
economies, take at least nine generations ¡ª double the
average of countries part of the OECD.Interestingly, no
countries had both high inequality and high mobility.
This correlation between inequality and mobility has been
noted as the ¡°Great Gatsby Curve¡±, and it shows another
pernicious effect of inequality.The following chart shows
all the countries included in the report and their
intergenerational income mobility.
Business Insider/Madison Hoff, data from the Organisation
for Economic Co-operation and Development
¡¡¡¡Here are the 12 countries in the OECD study where it
would take fewer generations for someone born in a low-
income family to reach their country's average income
than someone born into a low-income family in the US to
reach the nation's average income, ranked from the
shortest to the longest length of time.
¡¡¡¡The most recent available data for the Gini
coefficient, a standard measure of income inequality in a
country, is used to separate ties in the ranking, where 0
equals complete equality and 1 equals complete
inequality. Figures come from the OECD, and represent
years between 2014 and 2017.
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