“…This is consistent with some evidence in economic history as with the case of British education during the industrial revolution(West, 1975a(West, , 1975b(West, , 1994, as well as with the idea of the educational Kuznets curve in which initial investments in human capital are made by richer income groups (causing inequality to rise and, in our context, relative mobility to fall) and later by lower income groups (causing inequality to fall and relative income mobility to rise)(Arshed et al, 2018;Guarini et al, 2018;Morrisson & Murtin, 2013;Meschi & Scervini, 2014;Shukla & Mishra, 2019).5 This echoes Guëll et al (2018) who used regional variations in income mobility within Italy to argue that areas with more economic activity enjoyed greater mobility.6 This depiction of the indirect effect as α 1 γ 2 is useful because it can also speak to rent-seeking. In this paper, we have preferred to focus on how greater economic freedom allows more room for specialization, business formation, more investments in human capital and fewer legal barriers.…”