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MENTAL MODEL · M6172

Great Gatsby Curve

Great Gatsby Curve
BusinessHigh supportLabor Economics
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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

A curve describing the positive correlation between high inequality and low social mobility. Countries with higher Gini coefficients (wealth gap) tend to have higher intergenerational income elasticity (children's income depends more on parents), i.e., the phenomenon of "relying on one's parents" is more severe.

SCAFFOLDING EFFECT

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A quantitative indicator of class solidification. It reminds us that inequality is not only a current distribution issue but also a future opportunity issue. In environments at the high end of the curve, the weight of individual effort in changing one's fate decreases, while the weight of family background increases.

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Describes the curve showing a positive correlation between intergenerational income mobility and inequality: the more unequal a country's income distribution, the lower the intergenerational mobility (the stronger the role of birth in determining destiny). The mechanism is that the wealth gap solidifies the opportunity structure.

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Source support: Explicit

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    en.wikipedia.orghttps://en.wikipedia.org/wiki/Great_Gatsby_CurveZH · Explicit
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