A recent paper by Professor Melissa S. Kearney and co-author Philip B. Levine presented at the latest Brookings Panel on Economic Activity meeting has garnered a significant amount of media attention.  The paper is titled "Income Inequality, Social Mobility, and the Decision to Drop Out of High School."  In the paper, Kearney and Levine document that low-income youth who live in areas with greater income inequality are less likely to graduate from high school.  Their lower investments in human capital can be expected to translate into lower earnings later in life.  Kearney and Levine argue that this could be an important channel whereby inequality is perpetuated across generations.  

Click on the links to read articles about the research study that appeared in the Washington Post, a Wall Street Journal blog, CNN Money, and the Christian Science Monitor.  A short clip of Kearney talking about the paper's findings can be found here

A summary of the paper can be found here and the full paper here.