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Figure 7: “The Great Gatsby Curve”Higher income inequality associated with lower intergenerational mobility . The Great Gatsby Curve Intergenerational earnings elasticity 0.6 0.6 0.5 United Kingdom 0.5 United States 0.4 France 0.4 Japan Germany 0.3 0.3 New Zealand Sweden y = 2.2x - 0.27 R² = 0.76 0.2 Finland 0.2 y = 2.2x - 0.27 Norway R² = 0.76 Denmark 0.1 0.1 0.15 0.20 0.25 0.30 0.35 0.40 Inequality (1985 Gini Coefficient) Source: Corak (2011), OECD, CEA estimates January 12, 2012 7

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