The Inequality Podcast

Some 300 years after his birth, Adam Smith remains a towering figure in economic thought — and one whose ideas are often oversimplified. While Smith is rightly remembered as a champion of free markets, he also wrote extensively about those left behind by unfettered capitalism, articulating a moral philosophy not nearly as well known as “the invisible hand.”Eric Schliesser is a professor of political science at the University of Amsterdam. His book, Adam Smith: Systematic Philosopher and Public Thinker, reintroduces contemporary readers to a forgotten side of Smith, one interested in inequality and political power. Schliesser speaks with host Steven Durlauf about this aspect of Smith’s work, as well as the decline of the economist-as-moral-philosopher.

In every corner of the world, right-wing and even centrist policymakers voice a similar argument: that raising taxes will lead high earners to flee. In the United States, fear of tax flight looms large in blue states, where lawmakers worry local millionaires will decamp for tax havens like Florida and Texas. But research shows that even in states like Illinois, New York and California, millionaires tend to stay put. Why?Cristobal Young, a sociologist at Cornell and the author of The Myth of Millionaire Tax Flight, argues that even in this era of remote work, the wealthy still rely on local assets: professional networks, concentrated expertise, and more. Drawing on insights from anonymized tax returns and census data, Young documents the reasons that the rich tend to stay in high-tax states despite having the resources and incentives to flee. On this episode, Young discusses his work and its implications for inequality with hosts Steven Durlauf and Geoff Wodtke.

Few policy areas generate the level of charged debate that education policy does. For parents and teachers alike, issues such as school choice, standardized testing, and discipline have persisted as political lightning rods. In such a contentious environment, finding evidence-based solutions is essential to improving both decision-making and educational outcomes.Caterina Calsamiglia is an ICREA Research Professor and the group leader of the Computational Social Science and Humanities unit at the Barcelona Supercomputing Center (BSC), where she also leads the Welfare and Equity Group. In this conversation, Calsamiglia and host Steven Durlauf discuss her research into school choice, testing and more.

Whatever a country’s level of income inequality, its level of wealth inequality is even worse. In fact, in many countries there is no correlation between the level of income inequality and wealth inequality. So if differences in income aren’t the main factor driving wealth inequality, what is?Fabian Pfeffer is a professor of sociology at the Ludwig-Maximilians-University (LMU) Munich where he holds the Chair for Social Inequality and Social Structures. He is the founding director of the Munich International Stone Center for Inequality Research. Before that, he was the founding director of the Center for Inequality Dynamics at the University of Michigan. In this conversation, Pfeffer and host Steven Durlauf discuss wealth inequality dynamics across nations and generations.

In traditional economic models, individuals have one overriding motivation: utility. While this utility-maximizing paradigm has its advantages, it risks overlooking other forces that shape individual decision-making. One such force is group identity. Whereas a utility-maximizing model emphasizes what one wants, an identity-based model might emphasize what one believes they should want — because of who they are.Rachel Kranton is the James B. Duke Professor of Economics at Duke University, where she specializes in how institutions and social forces affect economic outcomes. Her work has helped build the foundation for an approach to economics that incorporates identity, transforming the way economists understand individual decision-making. She joins hosts Steven Durlauf and Ariel Kalil to discuss her identity-based approach to studies of schools, gender dynamics, workplace culture, and more.

The most complete measures of inequality consider the full life-course of an individual, from childhood to adulthood, and from adulthood to old age. One determinant of life outcomes is education, particularly whether one has obtained a college degree. Research has shown clear benefits of earning a diploma. But many qualified young people do not pursue one. Why?Today on the show, we present two conversations that address this question. First, host Steven Durlauf is joined by Salvador Navarro, professor of economics at the University of Western Ontario and a Stone Center affiliate. They discuss his research into the complex set of factors that lead some students not to attend college. Then, Steven is joined by Stephen Trejo, a professor of economics at the University of Texas at Austin and a leading expert on the economic standing of Hispanic Americans. They discuss why college graduation rates have remained stubbornly low among the children and grandchildren of Hispanic immigrants.

Some of the most heated debates in American life center on how much intergenerational inequality is influenced by historical context. Inequality, of course, doesn’t come out of nowhere—history always exerts some influence—but to what extent are today’s ills attributable to those of the past?The challenge for scholars is to pinpoint the exact mechanisms through which decades- or centuries-old forces persist. The past may not be dead—so how does it live on, empirically?Deirdre Bloome, Professor of Public Policy at the Harvard Kennedy School and Faculty Member at the Harvard Center for Population and Development Studies, joins host Steven Durlauf to discuss her work measuring the historical evolution of racial inequalities in the family and the economy, and their lasting impact on mobility.”

Decades after the end of Jim Crow, residential segregation remains a major factor in American life. The historical causes of this are well-known; less so are the ongoing forces that maintain segregation, despite progress made in other areas. For example, why do so many more high-income Black households live in low-income neighborhoods when compared to their affluent white counterparts? What drives this and other forms of 21st-century segregation?Dionissi Aliprantis is a Research Fellow at the Center for Economic Research on Governance, Inequality and Conflict (CERGIC) at the École Normale Supérieure (ENS) de Lyon in France. His research has focused on identifying neighborhood effects, quantifying the factors contributing to the racial wealth gap, and more. He joins host Steven Durlauf to discuss segregation, neighborhood effects, and the methodological challenges in studying them.

Traditional economic models often rely on tidy assumptions: rational agents, stable equilibria, linear relationships and so on. But those models can struggle to capture the messy reality of actual systems. Societies are constantly evolving. Assumptions can shift. And isolating the variables that underlie such changes can be daunting.Scott Page is the John Seely Brown Distinguished University Professor of Complexity, Social Science, and Management at the University of Michigan. He joins host Steven Durlauf to discuss the relatively brief history of complex systems thinking and its impact on the social sciences. They also discuss Page’s work on diversity and its capacity to create more robust systems.

The United States doesn’t have enough affordable housing. It has also failed to adequately address the climate crisis. These statements may not appear connected in any obvious way, but addressing one crisis inevitably leads to questions about the other. How do we build millions of new homes without leaving a massive carbon footprint? Perhaps one answer is to retrofit. But if cities fund eco-friendly renovations in working-class neighborhoods, what’s to stop “green gentrification”?Daniel Aldana Cohen’s work sits at this intersection. He is an assistant professor of sociology at the University of California, Berkeley, where he is director of the Socio-Spatial Climate Collaboration and serves as a member of the Graduate Group of the Designated Emphasis in Political Economy. On this episode, he speaks with host Geoff Wodtke about how the United States might forge a way out of these twin crises, drawing on policy successes found abroad and in American history.