{
  "title": "The Threat of Inequality of Opportunity",
  "publication": "IMF Blog, November 7, 2019",
  "sourceUrl": "https://www.imf.org/en/blogs/articles/2019/11/07/the-threat-of-inequality-of-opportunity",
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  "summary": "Title: The Threat of Inequality of Opportunity",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Title: The Threat of Inequality of Opportunity\n- Authors: Shekhar Aiyar, Christian Ebeke\n- Publication type: Chart of the Week / blog page\n- Date: November 7, 2019\n- Related theme tags in source content: Income inequality"
    },
    {
      "heading": "Data and measurement",
      "content": "- Data source: World Bank’s Global Database on Intergenerational Mobility.\n- Key measure of inequality of opportunity: the correlation between fathers’ and sons’ incomes (higher correlation = less likely that someone will be better off than their parents = less equal distribution of opportunity = lower intergenerational mobility).\n- Income inequality measure used: Gini coefficient (described as the widely-used Gini coefficient)."
    },
    {
      "heading": "Key findings",
      "content": "- Inequality of opportunity acts as an “umpire” in the relationship between income inequality and long-term growth.\n- When the sample of countries is split by intergenerational mobility:\n  - For countries with high mobility, there is little discernible relationship between real GDP per capita growth and income inequality (Gini coefficient).\n  - For countries with low mobility, the relationship between real GDP per capita growth and income inequality (Gini coefficient) is strongly negative.\n- Conclusion drawn: Inequality of opportunity is central to explaining the relationship between inequality and growth."
    },
    {
      "heading": "Mechanisms linking inequality of opportunity and persistent inequality",
      "content": "- Higher inequality of opportunity tends to persist under:\n  - Unequal access to education.\n  - Labor markets segregated into insiders and outsiders.\n  - Financial markets that favor the better-off.\n- Persistent inequality of opportunity entrenching income inequality limits potential and prospects of low-income earners and stymies long-term growth."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Governments need policies to:\n  - Widen access to high quality early education.\n  - Reduce labor market duality and structural unemployment.\n  - Broaden the sources of finance available to new entrepreneurs.\n- Rationale: Leveling the playing field would not only promote social justice, but also enhance growth according to the evidence in the authors’ paper.\n\nThe Threat of Inequality of Opportunity — Shekhar Aiyar, Christian Ebeke; November 7, 2019.\n\n---\n\n\n References\n\n- https://www.imf.org/wp-content/uploads/2019/11/eng-oct-21-inequality.png\n\nSource: https://www.imf.org/en/blogs/articles/2019/11/07/the-threat-of-inequality-of-opportunity"
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    "Authors: Shekhar Aiyar, Christian Ebeke",
    "Published: November 7, 2019",
    "Title: The Threat of Inequality of Opportunity",
    "Authors: Shekhar Aiyar, Christian Ebeke",
    "Publication type: Chart of the Week / blog page",
    "Date: November 7, 2019",
    "Related theme tags in source content: Income inequality",
    "Data source: World Bank’s Global Database on Intergenerational Mobility.",
    "Key measure of inequality of opportunity: the correlation between fathers’ and sons’ incomes (higher correlation = less likely that someone will be better off than their parents = less equal distribution of opportunity = lower intergenerational mobility).",
    "Income inequality measure used: Gini coefficient (described as the widely-used Gini coefficient).",
    "Inequality of opportunity acts as an “umpire” in the relationship between income inequality and long-term growth.",
    "When the sample of countries is split by intergenerational mobility:",
    "Conclusion drawn: Inequality of opportunity is central to explaining the relationship between inequality and growth.",
    "Higher inequality of opportunity tends to persist under:",
    "Persistent inequality of opportunity entrenching income inequality limits potential and prospects of low-income earners and stymies long-term growth.",
    "Governments need policies to:",
    "Rationale: Leveling the playing field would not only promote social justice, but also enhance growth according to the evidence in the authors’ paper.",
    "[https://www.imf.org/wp-content/uploads/2019/11/eng-oct-21-inequality.png](https://www.imf.org/wp-content/uploads/2019/11/eng-oct-21-inequality.png)"
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