Post by ehsanulh125 on Jan 9, 2024 7:15:54 GMT
In the developed world, since the 1970s, the social divide has been increasingly widening, and wealth and income differences are constantly increasing (Piketty, 2014). At the same time, the role of social mobility, i.e. interoperability between social strata, has increased in value. Corak (2013) came to the conclusion that in countries with high income inequality, parents' earnings determine their children's future earnings to a greater extent. It can therefore be said that inequality and low mobility go hand in hand.
Mobility and inequalities Country Email List in the world Source: own editing based on data from Corak (2016) and World Bank (2020). Based on the homo economicus image of man, high social mobility is strongly opposed to the interests of wealthier families, since well-to-do parents want their children to live a similarly comfortable life. In reality, however, everyone can benefit from higher social mobility, as it has a huge influence on political stability, social cohesion, economic indicators, and ultimately on broadly understood sustainability. In today's knowledge-based society, the role of human capital is being valued, and those countries that place great emphasis on the training of citizens who are educated, speak foreign languages and have the appropriate soft skills will be more and more competitive.
István Széchenyi's idea that "The strength of a nation lies in the multitude of educated people" has perhaps never been so valid. In poorer families, where they are forced to devote resources to short-term survival, long-term investments in children's education with an overall positive return are less likely to be realized. This is also a problem at the national level, as there is a lot of wasted human capital. Therefore, a higher level of mobility also has a positive effect on the economy, since people can use their inherent talent with due diligence, this leads to efficient labor market allocation and ultimately to an increase in productivity and an improvement in the competitiveness.
Mobility and inequalities Country Email List in the world Source: own editing based on data from Corak (2016) and World Bank (2020). Based on the homo economicus image of man, high social mobility is strongly opposed to the interests of wealthier families, since well-to-do parents want their children to live a similarly comfortable life. In reality, however, everyone can benefit from higher social mobility, as it has a huge influence on political stability, social cohesion, economic indicators, and ultimately on broadly understood sustainability. In today's knowledge-based society, the role of human capital is being valued, and those countries that place great emphasis on the training of citizens who are educated, speak foreign languages and have the appropriate soft skills will be more and more competitive.
István Széchenyi's idea that "The strength of a nation lies in the multitude of educated people" has perhaps never been so valid. In poorer families, where they are forced to devote resources to short-term survival, long-term investments in children's education with an overall positive return are less likely to be realized. This is also a problem at the national level, as there is a lot of wasted human capital. Therefore, a higher level of mobility also has a positive effect on the economy, since people can use their inherent talent with due diligence, this leads to efficient labor market allocation and ultimately to an increase in productivity and an improvement in the competitiveness.