Overview
This lecture discusses how social mobility in the United States is measured, observed trends and regional differences, and key factors affecting a child's chances of moving up the income distribution.
Measuring Social Mobility
- Social mobility refers to the ability of children born in low-income families to reach higher income levels as adults.
- A common measure is the percentage of children born in the bottom fifth who reach the top fifth of the income distribution.
- Social mobility can also be measured by movements into the middle class or other percentiles.
Trends in the United States
- Big data allows for precise measurement of social mobility by comparing child and parent incomes across birth cohorts (1971–1982).
- Social mobility rates in the U.S. have remained stable over time for recent generations.
- The U.S. has lower social mobility compared to countries like Denmark or Canada.
Regional Variation in Mobility
- The U.S. shows large regional differences in social mobility across 740 defined commuting zones.
- Some rural areas like Iowa have high mobility (up to 16%), but some urban and Southeastern regions have very low mobility (<5%).
- Urban areas generally have lower mobility than rural zones.
- High achievers from rural, high-mobility areas often move to cities for better jobs as adults.
Factors Affecting Social Mobility
- Five main factors explain differences in mobility across areas:
- Segregation: More segregated cities have lower mobility.
- Income Inequality: Areas with a smaller middle class have lower mobility.
- School Quality: Better public schools boost mobility for low-income children.
- Social Networks: Strong community connections, like those found in Salt Lake City, support higher mobility.
- Family Structure: Areas with more single-parent households have lower mobility.
Key Terms & Definitions
- Social Mobility — The ability to move up in the income distribution compared to one's parents.
- Commuting Zones — Regional divisions used to analyze local economic and social trends.
- Segregation — Economic or social separation of groups within a community.
Action Items / Next Steps
- Reflect on what makes high-mobility areas successful and prepare to discuss possible policy solutions.
- Review map-based data on social mobility for specific regions if provided as a supplement.