Mich : The breakdown of the social elevator : social mobility and income inequality

Pierre Pestieau

The purpose of this talk is to defend the idea that the role of the welfare state has probably never been as important as it is today, but that this implies that it is renewed to meet the challenges presented by the various social fractures. The major source of these fractures is undoubtedly the breakdown of the social elevator. The welfare state may have been too concerned about income inequality and poverty and not enough about social mobility. It will have to redirect its priorities and adopt a more proactive policy. This requires securing the lives of the poor but also those of the middle classes, who bear the brunt of shocks that entails a globalized market economy. This requires above all to give everyone hope and prospects by restarting the social elevator.