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The Economics of Inequality and Education

Nobel laureate Prof. James Heckman delivered a keynote at the 2024 Annual Research Night of the Department of Economics at the University of Zurich. In his talk, he explored the critical relationship between inequality and education, emphasizing that addressing disparities in early childhood is key to reducing long-term inequality. He argued that policies focused on early interventions for disadvantaged children are the most effective way to promote social mobility. While generous welfare systems, like Denmark's, aim to reduce inequality, Heckman pointed out that they rely more on tax and transfer mechanisms than on successfully developing human capital through education. He also highlighted that family background and neighborhood choices have a significant impact on children's outcomes, with wealthier families often benefiting more from universal services. Preserving the role of parental love and support, Heckman concluded, is essential in designing policies that foster equal opportunities from a young age.