The intergenerational elasticity provides the percentage difference in a child's status given a 1% difference in their parents status. In the US today it is approximately _, while in a perfect meritocracy it would be _. A) 0.15; 0
B) 0.5; 0
C) 0.15; 1
D) 0.5; 1

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Nayahlizruiz19111idn Nayahlizruiz19111idn

05-12-2022
Business

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The intergenerational elasticity provides the percentage difference in a child's status given a 1% difference in their parents status. In the US today it is approximately _, while in a perfect meritocracy it would be _. A) 0.15; 0
B) 0.5; 0
C) 0.15; 1
D) 0.5; 1

Sagot :

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Eshaneman91idn Eshaneman91idn · Answer 1 · 2022-12-08T03:41:42-05:00

The intergenerational elasticity provides the percentage difference in a child's status given a 1% difference in their parents status. In the US today it is approximately 0.5 while in a perfect meritocracy it would be 0.

What is intergenerational elasticity?

Assuming that the intergenerational relationship is constant across the income distribution, intergenerational elasticity theorises that changes in inequality between generations have an impact on the intergenerational relationship. Less is known about the characteristics of new intergenerational persistence measures.

If intergenerational elasticity provides: 1% difference in their parents status

Now in the US it is approximately 0.5,

While in a perfect meritocracy it would be less than 0.5(0.5>)

As per above given option then it In perfect meritocracy it would 0.

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