Income inequality and income mobility: the ‘Great Gatsby curve’ in 46 spanish provinces
DOI:
https://doi.org/10.3989/ris.2023.81.3.22.00560Keywords:
Absolute Income Mobility, Great Gatsby Curve, Intergenerational Persistence of Income, Opportunity Atlas, Relative Income MobilityAbstract
With data published in the Opportunities Atlas, this paper looks for differences in income mobility among 46 Spanish Provinces, the association between inequality and absolute and relative income mobility (the so called ‘Great Gatsby Curve’) and the relationship between income mobility and variables like mean income, unemployment and grade repetition at school, following a paper by Chetty et al (2014). It finds a correlation of about 0, 5 between absolute and relative income mobility. It does not find association of relative income mobility with inequality; but it finds such an association for absolute income mobility, plus a still stronger one with unemployment. The more likely causal chain seems to be that the prosperity of provinces determines their absolute mobility and that absolute mobility determines relative mobility. These results raise the question of which ecological units influence income mobility and why, a question that remains open.
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