Skip to main content

Equality of Opportunity

Click here for the Equality of Opportunity Project website hosted by Harvard (hat tip: Christopher Coyle). This project looks at inter-generational mobility in the United States. Why? Because there is a fear that such mobility in the U.S. (the land of opportunity) is lower than in many developed countries. A summary of the project findings are here and NY Times coverage is here. Two interesting findings are that family structure and religion are some of the strongest predictors of upward social mobility. They also find that tax policies do little to improve mobility.

Lighter colors represent areas where children from low-income families are more likely to move up in the income distribution.  Source: Equality of Opportunity Project 

Popular posts from this blog

The Failure of Herstatt Bank

As an undergraduate, I was taught about the failure of Herstatt Bank in 1974 and Herstatt risk. This bank was only the 35th largest bank in Germany at the time so why would anyone be interested in studying its failure? Herstatt failed because of its involvement in risky foreign exchange business. When it closed its doors on 26 June 1974, counterparty banks (mainly in New York) had not received dollars due to them because of time-zone differences - this is known as settlement risk. The cross-jurisdictional implications of its failure resulted in the Bank for International Settlements setting up the Basel Committee on Banking Supervision and Herstatt's failure was a key reason for the establishment of real-time gross settlements systems, which ensures that payments between two banks are executed in real time. The Bank of England's Ben Norman has an interesting post on Herstatt over at the Bank's new blog ( Bank Underground ). As well as giving an excellent overview of

Boom and Bust: A Global History of Financial Bubbles

Boom and Bust: A Global History of Financial Bubbles, co-authored with my colleague Will Quinn , is forthcoming in August. It is published by Cambridge University Press and is available for pre-order at Amazon , Barnes and Noble , Waterstones and Cambridge University Press . 

The Great Depression

Marginal Revolution University has a great video on the Great Depression.