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Krugman recently wrote about this:

The Great Gatsby Curve - NYTimes.com

Below is what he dubs the Great Gatsby Curve. On the horizontal axis is the Gini coefficient, a measure of inequality. On the vertical axis is the intergenerational elasticity of income -- how much a 1 percent rise in your father's income affects your expected income; the higher this number, the lower is social mobility.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se
by A swedish kind of death on Fri Jan 20th, 2012 at 06:19:41 AM EST
There is a recent back-and-forth discussion on the Great Gatsy curve, traceable from here.
by das monde on Sun Jan 22nd, 2012 at 03:36:57 AM EST
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