The sharp and steady increase in US inequality in recent decades has been well documented. Less attention has been paid to a potentially even more important and alarming trend — a decline in US social mobility.
“One of the most notable changes in the US economy in recent decades has been the rise in inequality. A key inflection point in inequality appears to be around 1980. It was during the early 1980s that there was a pronounced increase in the 90-10 income gap and a sharp rise in the income share of the 1%.
“With the advent of a more unequal society, concerns about a possible decline in inequality of opportunity have risen to the forefront of policy discussion in the US. To better understand inequality of opportunity, economists and other social scientists have increasingly focused attention on studies of intergenerational mobility. These studies typically estimate the strength of the association between parent income and the income of their offspring as adults.”