How Did the Increase in Economic Inequality between 1970 and 1990 Affect Childrens Educational Attainment?
Susan MayerMayer found that a child’s family income does not account for the effect of inequality on their schooling. The effect of inequality, rather, is due to the effect of other people’s income. When the rich got richer, they benefited from positive interpersonal comparisons. However, as the poor got poorer, they suffered from more negative interpersonal comparisons. The growth in inequality, in sum, probably reduced high school graduation among low-income children, and increased college graduation among high-income children.
