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The economist asking how education impacts equality

17 October 2024

Interview Society Learning & Education Equity Covid-19 Education policy Education systems Learning environments

Guido Neidhöfer is showing how all children benefit from a more just society

Image by Claudia Flandoli for BOLD

Guido Neidhöfer is an economics researcher at the ZEW – Leibniz Centre for European Economic Research in Germany and visiting professor at the Turkish-German University in Istanbul. Guido studies social mobility and the drivers of inequality. He is investigating how equal opportunities and economic growth can go hand in hand. Annie Brookman-Byrne talks with Guido about connecting his life experiences with his research, and the potential impact of globalization on inequality.

Annie Brookman-Byrne: How did you become interested in studying social mobility and equal opportunities?

Guido Neidhöfer: I became aware early on of the inequality that exists in the world, and recognized that there is enormous potential and hidden talent in marginalized children – talent that could be unleashed if opportunities were more equitably distributed. Inequality is obviously an important issue from an emotional and humanitarian perspective, but beyond that, all of us would benefit from a more just society. My interest in these topics motivated me to volunteer during my school and university years. I volunteered at a Center for Family Care and Education in the city of Trujillo in northern Peru, doing any job that was needed, from teaching to construction work. In Rome, I co-founded a preschool for Roma children living in illegal camps in remote areas of the city. Later, I volunteered in Lima, Peru, at a center for children and youth with addiction problems.

Throughout my life, I have seen how inequalities at birth can define the rest of a child’s life – in the slums of South American cities as well as among vulnerable populations in Europe. Inequality due to unequal circumstances that are beyond an individual’s control is simply unacceptable. Every human being is entitled to certain rights and dignity.

Eventually I decided to pursue a career in research to learn more about inequality. This allows me to build on my hands-on experiences by examining statistics, evidence, and the academic literature.

ABB: What questions are you asking in your research?

GN: I’m trying to find out why equal opportunities are important for our society. How do low levels of upward mobility affect economic growth and sustainable development? How do social mobility, technological change, and innovation relate to one another? I’m also looking at education and migration as potential drivers of inequality in both developed and developing economies.

Fairness and justice are important concerns, but it is also important to look at what equality of opportunity means in purely pragmatic terms. Not everyone is convinced that fairness and justice are sufficient arguments for equality. People may have very different views, values, and emotional responses, and they may have difficulty looking at the facts in a scientific and objective way.

Our goal should be to promote equal opportunity while also increasing economic efficiency; surely no one, whatever their political views, would argue against efficiency and prosperity. If more equality sometimes leads to less economic efficiency, we need to decide how much efficiency we are willing to give up in the interest of equality. Conversely, we need to decide how much inequality we are willing to tolerate for the sake of efficiency. However, our research shows that improving social mobility actually contributes to more economic growth and development.

“Our goal should be to promote equal opportunity while also increasing economic efficiency.”

My hope is that our research findings will motivate policymakers to address the causes of unfair early-life inequalities and their consequences. I also hope that asking these questions will encourage further research.

ABB: What is a key finding from your recent work?

GN: We identified a disproportionate impact of school closures during the COVID-19 pandemic across Latin America, and looked at the potential long-term consequences for inequality, poverty, and social mobility. Policymakers and civil society organizations have used our findings to emphasize the need for corrective measures in the coming years if we are to prevent a crisis in human development.

In my view, the research clearly shows that one of the main drivers of early-life inequality is children’s asymmetric exposure and vulnerability to shocks such as parental job loss, deteriorating health, and economic crises. When insurance against such events is lacking, as is often the case in poor families, these shocks can have a huge impact.

ABB: What’s next for your research?

GN: I plan to study what globalization means for social mobility and equality of opportunity. On the one hand, globalization can increase social mobility by providing better opportunities through technological change and innovation. On the other hand, a more interconnected world makes people more susceptible to shocks that can affect their potential, their wellbeing, and their ability to make sustainable investments, for example investments in their education and skills. This is especially true for disadvantaged groups.

One of the major challenges of our time is to find ways to ensure that all children have the opportunity to develop to their full potential, and are able to withstand societal and economic upheaval. My research is intended to help meet this challenge.

“One of the major challenges of our time is to find ways to ensure that all children have the opportunity to develop to their full potential.”

ABB: Has working in this field changed how you teach or parent?

GN: Yes, absolutely! When I teach, I always try to provide a context and a story so students can recognize the relevance of their studies for society. Working in this field also affects how my wife and I raise our children. We are teaching them to be thankful for the opportunities they have in life, and not to take their privileges for granted. We are teaching them the importance of respecting and helping those who are less fortunate.