Peking University, March 26, 2024:  Prof. James Heckman, the 2000 Laureate of the Nobel Prize in Economics, visited Peking University (PKU) and delivered a lecture titled “How the Welfare State Affects Inequality and Social Mobility: A Comparison of the US and Denmark and Its Implications for China.” Prof. Zhou Li'an, director of the PKU Faculty of Economics and Management chaired the event.


Equal Access is Not the Same as Equal Utilization

In his lecture, Heckman delved into a comparative analysis of inequality and social mobility in Denmark and the U.S. based on each country’s social policy system. He examined the Scandinavian welfare state's reputation as a paradigm for fostering equality and social mobility, given the high level of social services and social insurance. However, he contended that while there may be equal access to state services like universal healthcare, and free college in Denmark, equal utilization of these services is not guaranteed-- universal access to services means more advantages are reaped by the affluent than by the disadvantaged.

Using human capital development in early childhood as an example, Heckman asserted that neighborhood environments hold substantial and long-lasting influence on intergenerational inequality, with children from affluent families typically receiving more educational opportunities. He likened this trend in the Danish model to the sorting of society into distinct income groups, as seen in the United States.

Drawing from these findings, Heckman explored potential social policy options for China, suggesting that China could focus on disadvantaged children to enhance equality of opportunity in early childhood, thus fostering greater intergenerational mobility.

Finally, in the Q&A session, Heckman encouraged PKU students to expose themselves to diverse experiences. Reflecting on his own life, he credited his achievements to his willingness to explore various paths. Daring to fail, it seems, is part of what enables one to realize upward social mobility.

The event was held by the PKU Guanghua School of Management as part of the Guanghua Thought Leaders Series. 


About James Heckman

James Heckman is the Henry Schultz Distinguished Service Professor of Economics and Director of the Center for the Economics of Human Development at the University of Chicago. In 2000, Heckman won the Nobel Prize in Economics for his work on the micro-econometrics of diversity and heterogeneity and for establishing a conceptually and empirically rigorous basis for evaluating public policy.

Reported and written by: Sean Elijah Tan
Edited by: Wu Jiayun