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Wealthy parents’ greatest asset is the assets they will pass on | Torsten Bell

www.theguardian.com 29-12-2024 07:30 1 Minutes reading

As a Danish study shows, parental income determines our life chances – but in what way differs according to how rich they are

Parents shape our lives. There’s the love or its absence – and the genetics. On the financial side, academics focus on intergenerational income persistence (how much parental income determines our own) and its inverse (social mobility).

This varies between countries. Economist Miles Corak has shown that higher inequality nations tend to be less socially mobile. When the rungs on the ladder are far apart, individuals born poor struggle to climb them.

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Factory closures highlight the turbulent shift to a green economy, exposing political challenges and the urgent need for a equitable move to net zero

One of the biggest political battles of the future began to take shape in 2024, yet it did not centre on Westminster. Instead, try Grangemouth in central Scotland, Port Talbot in south Wales and Luton in the south of England. Their stories were not front-page staples, but each was of huge significance – locally, nationally and economically.

Grangemouth is Scotland’s sole oil refinery, whose owners confirmed in September that it would shut, to be replaced by a terminal taking in imported fuel – with nearly 400 workers losing their jobs. In the last days of September, the only remaining blast furnace at Port Talbot was shut down, as part of a restructuring that will cost 2,800 employees their jobs. At the end of November, staff at Vauxhall in Luton were told the plant would shut, ending 120 years of the carmaker’s association with the town and putting between 1,100 and 2,000 jobs at risk. One result was two days of protests in the town a week before Christmas.

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