The Great Gatsby Tradeoff: Perceived Complementarity between Economic Inequality and Social Mobility

Economic equality, social mobility, and economic growth are societal features highly valued by most citizens in contemporary society. However, contrary to the implications of the Great Gatsby Curve—which suggests a negative correlation between economic inequality and social mobility—many people may accept high levels of economic inequality if it is accompanied by high social mobility. In this paper, we propose and test the hypothesis that many Americans perceive a tradeoff between economic inequality and social mobility. Through an online survey experiment with approximately 20,000 U.S. respondents in 2023, we examine how individuals navigate this tradeoff.

Our study reveals three key findings. First, while respondents express an aversion to inequality, they consistently exhibit a strong preference for upward mobility and economic growth. Second, increased opportunities for upward mobility lead to greater tolerance for income inequality, particularly among Asian American respondents in comparison to White respondents. Third, contrary to expectations based on the existing literature, exposure to income inequality does not significantly diminish beliefs in social mobility.

Together, these findings support the hypothesis of a perceived tradeoff in public attitudes toward societal inequality and mobility.