In the context of intergenerational inequality, regression toward the mean is captured by which of the following?
A) the tendency for inequality to be wider as a country experiences economic growth
B) the tendency for countries to diverge in their inequality
C) the tendency for income differences across families to get smaller over time as the various families move toward the mean income of the population
D) the tendency for the 90-50 wage gap to approach the 50-10 wage gap as a country experiences economic growth
E) the tendency for the tax code to erode inequality by targeting the mean tax rate to mean income

Question

Quizplus · Accepted Answer

Regression toward the mean in the context of intergenerational inequality refers to the phenomenon where extreme cases (either high or low income) in one generation tend to move closer to the average (mean) in the following generation, thus reducing income differences across families over time.

In the Context of Intergenerational Inequality, Regression Toward the Mean