What is Intergenerational Equity?

Intergenerational equity refers to the principle of fairness between generations, ensuring that today's decisions don't compromise the ability of future generations to meet their needs and enjoy similar opportunities.

The term gained prominence following Professor Robert Solow's seminal 1974 paper which established foundational principles for balancing present and future needs.

Intergenerational equity challenges short-termism in both policy and business decisions. Research from the Panel Study of Income Dynamics University of Michigan, a highly respected longitudinal study tracking American families since 1968, shows that economic, social and political inequalities tend to perpetuate across generations. Studies published in the Journal of Economic Perspectives and Oxford Economic Papers further confirm that family wealth significantly impacts educational achievement, future earnings potential, and wealth across multiple generations.

Beyond education, intergenerational equity encompasses healthcare access, pension systems, housing affordability and environmental sustainability—all critical elements of creating a fair society across time.

So, how businesses can create intergenerational impact?

✅ Pay Equity
Today's impact: Closes wage gaps across gender and ethnicity.
Long-term impact: Better educational and health outcomes for the next generation.

✅ Equal and Inclusive Parental Leave
Today's impact: Supports early childhood development and gender equity in caregiving.
Long-term impact: Children grow up with more balanced gender norms; daughters of involved fathers thrive academically.

✅ Flexible Work
Today's impact: Eases caregiving pressure and boosts productivity.
Long-term impact: Enables quality family time and models healthy work-life integration.

✅ Living Wage Commitments
Today's impact: Ensures workers meet basic needs without financial strain. Long-term impact: Improves children's life chances through reduced family stress.

✅ Scholarships
Today's impact: Opens doors for students who might not otherwise access higher education.
Long-term impact: Transforms entire family trajectories—first-generation graduates often achieve higher lifetime earnings and become benchmarks for future generations.

✅ Mental Health & Wellbeing Support
Today's impact: Builds resilient teams and reduces burnout.
Long-term impact: Emotionally well parents foster stronger child development.

✅ Climate Action
Today's impact: Future-proofs business and aligns with stakeholder values. Long-term impact: Ensures a more liveable planet for future generations.

How could your business decisions today create positive ripples for generations not yet born?