In the speech he gave at the Center for American Progress on January 12th, Alan Krueger, the Chairman of the Council of Economic Advisors, presented the “Great Gatsby” curve: the relationship between inequality and generational earnings mobility, citing in part a 2011 paper of mine.
Here is the draft of the paper from which some of the data he used were drawn, in particular see Figures 1 and 2:
Inequality from generation to generation the United States in comparison
Here is Figure 2, my version of the Great Gatsby Curve for a wider set of countries:
The discussion I offered in an earlier post also uses this information and relates to this theme: Inequality and Occupy Wall Street 5: decline of the American Dream
Here is the text of Krueger’s speech Alan Krueger, The Rise and Consequences of Inequality, Text, and here are the associated slides Alan Krueger, The Rise and Consequences of Inequality, Slides .
[Update: this post was updated on January 27, 2012 with a new version of the text “Inequality from Generation to Generation…” and the associated figure. This text can be cited as:
Miles Corak (2013), “Inequality from Generation to Generation: The United States in Comparison,” in Robert Rycroft (editor), The Economics of Inequality, Poverty, and Discrimination in the 21st Century, ABC-CLIO.
A complete list of references used to develop the estimates of the Intergenerational Earnings Elasticity is available here: References for intergenerational earnings elasticities. The following is a graph showing the exact values of the estimates.
Update, July 12, 2016: the published version of “Inequality from Generation to Generation …” is available as IZA Discussion Paper No. 9929. ]