Intergenerational income elasticity (social mobility) and social trust (social capital) are major indicators of social cohesion. Perceptions of social cohesion are, in fact, strongly and inversely correlated to perceptions of income inequality. At lea...
Intergenerational income elasticity (social mobility) and social trust (social capital) are major indicators of social cohesion. Perceptions of social cohesion are, in fact, strongly and inversely correlated to perceptions of income inequality. At least on the cognitive level, income inequality bears an undeniable correlation to social capital, mobility, and cohesion. This finding suggests that the level of a society’s cohesion depends on income inequality, and that income distribution policy therefore plays a vital role in forging social cohesion.