The paper by Miles Corak explores the relationship between income inequality, equality of opportunity, and intergenerational mobility. It argues that rising income inequality in high-income countries, particularly in the United States, is likely to reduce intergenerational earnings mobility for the next generation. The author presents evidence from cross-country comparisons and underlying trends to support this claim. The paper discusses the "Great Gatsby Curve," which illustrates the inverse relationship between income inequality and intergenerational mobility. It also examines the role of human capital investments, labor market inequalities, and public policies in shaping these relationships. The author suggests that increasing divergence in both monetary and nonmonetary investments in children during a period of rising inequality may lead to a widening gap in cognitive attainments and achievements necessary for college success. Additionally, the paper highlights the transmission of economic status and labor market connections from parents to children, particularly at the top end of the income distribution. Finally, it discusses how public policies can either exacerbate or mitigate these inequalities, with the United States being notable for its programs that disproportionately benefit the advantaged.The paper by Miles Corak explores the relationship between income inequality, equality of opportunity, and intergenerational mobility. It argues that rising income inequality in high-income countries, particularly in the United States, is likely to reduce intergenerational earnings mobility for the next generation. The author presents evidence from cross-country comparisons and underlying trends to support this claim. The paper discusses the "Great Gatsby Curve," which illustrates the inverse relationship between income inequality and intergenerational mobility. It also examines the role of human capital investments, labor market inequalities, and public policies in shaping these relationships. The author suggests that increasing divergence in both monetary and nonmonetary investments in children during a period of rising inequality may lead to a widening gap in cognitive attainments and achievements necessary for college success. Additionally, the paper highlights the transmission of economic status and labor market connections from parents to children, particularly at the top end of the income distribution. Finally, it discusses how public policies can either exacerbate or mitigate these inequalities, with the United States being notable for its programs that disproportionately benefit the advantaged.