The Inequality Podcast

When it comes to inheritance, prosperity and adversity are two sides of the same coin. Inheritance can allow parents to pass economic security and opportunity to their children. But inheritance can also transmit disadvantages. The children of low-income parents may live in under-resourced neighborhoods, attend low-performing schools, receive inadequate health care, and overall be offered limited pathways for mobility. So to what extent is inequality itself inherited? And how might that process differ around the world?Francisco “Chico” Ferreira is the Amartya Sen Professor of Inequality Studies at the London School of Economics, where he is also Director of the International Inequalities Institute. Before that, he had a long career at the World Bank, including serving as Chief Economist for the Africa Region. In this episode, he discusses his work on rethinking how intergenerational mobility ought to be conceptualized with host Steven Durlauf, comparing how inherited inequality manifests differently in the United States, Europe, Latin America, and Africa. 

Many undergraduates study the economy in depth only once: in an introductory survey course. But a traditional “Econ 101" syllabus can omit vital topics, including inequality and climate change. These subjects are often left for later courses, which most students will never take.Wendy Carlin is a professor of economics at University College London, where she co-directs the UCL Stone Center. She oversees CORE Econ, a project that aims to refocus the undergraduate economics curriculum on “the most important problems faced by our societies,” including injustice, climate and the future of work. On this episode, Carlin discusses the CORE Econ initiative and her research with host Steven Durlauf.

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.