Great Gatsby Curve: Relationship between inequality and mobility - Business Insider

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Here's where the US falls on the 'Great Gatsby Curve,' a damning chart economists use to track inequality in every country

. The World Economic Forum notes that one of the reasons there is better opportunity for all residents regardless of background is because of "high quality and equitable education systems" available in these countries.

For instance, the UK has a Gini coefficient of 0.33 and an elasticity of 0.5, while Canada has a Gini coefficient of 0.34 and an elasticity of 0.19. This means that Canada experiences more upward mobility than the UK —Developing countries, such as Chile, tend to fall in the high-inequality, low-mobility section of the Great Gatsby Curve.Countries that are at the top-right of the curve include several developing countries. For instance, Chile has an elasticity of 0.52 and a Gini coefficient of 0.

More people in developing countries are having difficulty moving up the economic ladder, according to aCarolina Sanchez, senior director of the Poverty and Equity Global Practice at the World Bank, said in the report that developing regions like South Asia and Africa are experiencing "stalled mobility" because children's economic success is dependent on their parents' income.

. In countries with better upward mobility, it would take fewer generations for low-income families to reach the country's average income. that compares the number of generations that it would take for low-income families to reach the average income in countries part of the OECD.

 

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