Monday, December 26, 2016

The fading American Dream - RAJ CHETTY, the Hill

Why have rates of upward income mobility fallen so sharply over the past half century? The key factors here are (1) the declining Gross Domestic Product (GDP) growth rates, and (2) the rising inequality in the distribution of growth. Although both factors are important, we find that most of the decline in absolute mobility is driven by the more unequal distribution of economic growth rather than the slowdown in aggregate growth rates.

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