China and the United States [chapter]

Roy van der Weide, Ambar Narayan
2021 Inequality in the Developing World  
The United States and China are the world's largest economies. Together they are responsible for about one-third of the world's economic output. This chapter aims to examine whether the two economic giants are also lands of opportunity where resources are allocated in a way that minimizes unrealized human potential. Our analysis shows that despite stark differences in their levels of development, the US and China report remarkably similar levels of socioeconomic mobility—levels considered low
more » ... ls considered low by international standards. The US's level of mobility has historically been low. Before it embarked on its transition from planned to market economy, socioeconomic mobility was relatively high in China. However, as it underwent a period of rapid economic growth, China's socioeconomic mobility declined significantly. The chapter concludes that the world's two major economic powers have converged to a low level of socioeconomic mobility where talent from disadvantaged backgrounds is excluded.
doi:10.1093/oso/9780198863960.003.0011 fatcat:4sr2xeirznc4ppfb4x5iebb7ry