I came across a fairly detailed study on social mobility that shows that despite widespread beliefs to the contrary, social mobility remains unusually poor in the United States. Some non-contiguous excerpts:
The United States has long been known as the land of opportunity, where hard work is rewarded and economic prosperity is within reach for all ... our national faith in this proposition is on the rise ... While few would deny that it is possible to start poor and end rich, the evidence suggests that this feat is more difficult to accomplish in the United States than in other high-income nations.... In sum, the intergenerational findings paint a portrait of a society in which family background matters a great deal, and matters for reasons that many people find unjust. Our national commitment to equality of opportunity requires that we take these statistics seriously, gain a better understanding of the mechanisms at work and work towards policies that will allow all Americans to reach their full economic potential.
The key findings relating to intergenerational mobility include the following:
- Children from low-income families have only a 1 percent chance of reaching the top 5 percent of the income distribution, versus children of the rich who have about a 22 percent chance.
- By international standards, the United States has an unusually low level of intergenerational mobility: our parents’ income is highly predictive of our incomes as adults. Intergenerational mobility in the United States is lower than in France, Germany, Sweden, Canada, Finland, Norway and Denmark. Among high-income countries for which comparable estimates are available, only the United Kingdom had a lower rate of mobility than the United States.
- Children born to the middle quintile of parental family income ($42,000 to $54,300) had about the same chance of ending up in a lower quintile than their parents (39.5 percent) as they did of moving to a higher quintile (36.5 percent). Their chances of attaining the top five percentiles of the income distribution were just 1.8 percent.
- Education, race, health and state of residence are four key channels by which economic status is transmitted from parent to child.
- African American children who are born in the bottom quartile are nearly twice as likely to remain there as adults than are white children whose parents had identical incomes, and are four times less likely to attain the top quartile.
- The difference in mobility for blacks and whites persists even after controlling for a host of parental background factors, children’s education and health, as well as whether the household was female-headed or receiving public assistance.
- After controlling for a host of parental background variables, upward mobility varied by region of origin, and is highest (in percentage terms) for those who grew up in the South Atlantic and East South Central regions, and lowest for those raised in the West South Central and Mountain regions.
Comments