jj

so I will be talking about another important aspect of

inequality, which is economic mobility.

So the definition of economic mobility is the movement of

people from one part of the income distribution to another.

So to explain this better, I'll use an example.

Imagine there are two countries, country and country B.

Both have the exact same dissolution distributions of income, but

they have different levels of mobility.

So in countries where people are constantly shifting from one

part of the income distribution to another, whereas in country

B people or people always remain in the same the

same position in the income distribution.

So obviously country A would have higher mobility, and along

with this higher mobility, they also have greater equality.

So this is extremely important because when economists look at

unique coefficients, they do not know which country has a

higher level of mobility.

Another important, another important aspect of mobility is intergenerational mobility.

So this is defined as the change in the economic

status of families from one generation to the next, so

it is often described as equality of opportunity.

So if a person has a high degree of intergenerational

mobility, it means, uh it means that the Children of

poor parents have the same prospects and opportunities as the

Children of of richer parents.

So when this intergenerational mobility is low, Children are likely

to be part of the same income distribution as their

parents. So mobility is studied.

Using a transition matrix or measuring mobility is extremely difficult,

since it requires tracking families for a long period of

time. Secondly, detailed data on mobility is not available for

enough country, so allow for analysis of how mobility is

related to a country's level of income per capita or

its rate of economic groups.

So there are several different ways and how income affects

in several different ways and how mobility effects income inequality.

So, for example, society with a high degree of mobility

is more likely able to use the talents of all

its citizens, the talents that can contribute to economic growth,

mayor the eyes and people born into any part of

the income distribution of society in which anyone can grow,

grow up to be the president or a scientist or

a CEO will obviously have more gifted president, scientist and

CEO was in a society in which access to these

careers is limited to members of a small class.

Now, the most important determinant of mobility is obviously access

to education.

This is because without the access to education, there is

no scenario in which members of poorer backgrounds are able

to get the same opportunities as those who are wealthier

than them.

And another important determinant of, uh, mobility is that of

marriage. So if if people marry, only those are the

same economic backgrounds or then economic mobility is prevented.

However, when people marry for reasons other than economic ones,

for example, of there is more mixture of classes and

the sentence leads to increase in economic mobility.

jj

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