Brookings Institution, March 10, 2016: Income Inequality, Social Mobility, and the Decision to Drop Out Of High School
“It is widely documented that places with higher levels of income inequality have lower rates of social mobility. But it is an open question as to whether this reflects a causal relationship. We propose that one channel by which higher rates of income inequality might lead to lower rates of upward mobility is through lower rates of human capital investment among low-income individuals.”