What impact do revolutions have on long-term wealth disparity?

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🔗 via nber.org.

Highlights

Can efforts to eradicate inequality in wealth and education eliminate intergenerational persistence of socioeconomic status? The Chinese Communist Revolution and Cultural Revolution aimed to do exactly that. Using newly digitized archival records and contemporary census and household survey data, we show that the revolutions were effective in homogenizing the population economically in the short run. However, the pattern of inequality that characterized the pre-revolution generation re-emerges today.

Almost half a century after the revolutions, individuals whose grandparents belonged to the pre-revolution elite earn 16 percent more income and have completed more than 11 percent additional years of schooling than those from non-elite households.

This study explores the impacts of the Chinese Communist Revolution on wealth disparity. While it did equalise wealth in the short term, in the long term, the same families who were on top before the revolution ended up on top again.

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