Tag Archives: employment

Poor Rich Kids? The Mysterious Decline in Mobility at the Top

A new research study on economic mobility from the Equality of Opportunity Project has the remarkable finding that absolute economic mobility—the likelihood that children will out-earn their parents—has declined dramatically over the last 40 years. Comparing the decline in mobility for middle income families between 1970 and the 2014 reinforces the concerning narrative that the hollowing out of the middle class over the last several decades is not simply a one-generation problem. Credit: Twenty20 The persistence of disadvantage across generations is truly troubling. But perhaps the most puzzling—and least commented upon—finding is the large positive correlation between the parent’s […]

Poor Rich Kids? The Mysterious Decline in Mobility at the Top

Absolute Mobility

A new research study on economic mobility from the Equality of Opportunity Project has the remarkable finding that absolute economic mobility—the likelihood that children will out-earn their parents—has declined dramatically over the last 40 years. Comparing the decline in mobility for middle income families between 1970 and the 2014 reinforces the concerning narrative that the hollowing out of the middle class over the last several decades is not simply a one-generation problem. The persistence of disadvantage across generations is truly troubling. But perhaps the most puzzling—and least commented upon—finding is the large positive correlation between the parent’s income and […]

Bernie Sanders can Calm Down, Inequality is not a Big Problem


Abstract
Income inequality is one of the hottest political issues in the United States. It was at the center of the “Bernie Revolution” in the 2016 Democratic Primaries and continued into the 2016 General Election. A 2015 ABC News poll found that forty-six percent of Americans thought that “the way income and wealth are distributed in the U.S.” worries them a great deal (Feather, 2015). Similarly, Thomas Piketty’s Capital in the 21 Century argued for the dangers of inequality was praised by multiple Nobel Laureate Economists and is already considered one of the most influential books of the […]

Poor at 20, Poor for Life


It’s not an exaggeration: It really is getting harder to move up in America. Those who make very little money in their first jobs will probably still be making very little decades later, and those who start off making middle-class wages have similarly limited paths. Only those who start out at the top are likely to continue making good money throughout their working lives.

That’s the conclusion of a new paper by Michael D. Carr and Emily E. Wiemers, two economists at the University of Massachusetts in Boston. In the paper, Carr and Wiemers used earnings data to measure how […]

The fading American dream: Economic mobility has nearly halved since 1940

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IMAGE: An infographic conveying results by Chetty et al ., which reveal that the probability for children to attain a higher income than their parents has dropped dramatically — from more than… view more Credit: Carla Schaffer / AAAS The probability for children to attain a higher income than their parents has dropped dramatically – from more than 90% for children born in 1940 to 50% for children born in the 1980s – according to a new study analyzing U.S. data. Results reveal that restoring economic mobility would require, in part, more equal economic redistribution. The "American Dream" promises […]

The shocking decline in American economic mobility

Flying under the radar is a recent study from Stanford University economist Raj Chetty and colleagues showing that the economic mobility in the United States has been nearly cut in half since 1940.

Using a sophisticated set of data from the Census Bureau and tax records, the researchers found that the probability of children reaching a higher living standard than their parents was only 50 percent for those born in the 1980s, compared with 92 percent for those born in 1940. The data were adjusted for inflation and other variables.

To be sure, growth in gross domestic product had slowed by […]

Black People Are Not All ‘Living in Hell’


Contrary to Donald Trump’s indiscriminate portrayal of African-Americans as “ living in hell ,” the black upper middle class is ascending the economic ladder at a faster rate than its white counterpart.

Scholars have begun to focus their attention on this phenomenon. William Julius Wilson , a sociologist at Harvard and the author of “The Truly Disadvantaged,” is working on a book about upward social mobility among African-Americans. In an email, he wrote me:

In an NBER paper issued in November 2016, Patrick Bayer, an economist at Duke, and Kerwin Charles, a professor of public policy at the University of Chicago, […]

Restoring America’s Economic Mobility

Frank Buckley
Author, The Way Back: Restoring the Promise of America Frank Buckley is a Foundation Professor at Scalia Law School at George Mason University, where he has taught since 1989. Previously he was a visiting Olin Fellow at the University of Chicago Law School, and he has also taught at McGill Law School, the Sorbonne, and Sciences Po in Paris. He received his B.A. from McGill University and his LL.M. from Harvard University. He is a senior editor of The American Spectator and the author of several books, including The Once and Future King: The Rise of […]

The fading American dream: Economic mobility has nearly halved since 1940

IMAGE

The probability for children to attain a higher income than their parents has dropped dramatically – from more than 90% for children born in 1940 to 50% for children born in the 1980s – according to a new study analyzing U.S. data. Results reveal that restoring economic mobility would require, in part, more equal economic redistribution. The “American Dream” promises that hard work and opportunity will lead to a better life, and that even those born to low-income families can “rise above the ranks” with sufficient effort. Despite much interest in economic mobility, however, studying it over generations remains […]

The fading American dream: Economic mobility has nearly halved since 1940

IMAGE

American Association for the Advancement of Science An infographic conveying results by Chetty et al ., which reveal that the probability for children to attain a higher income than their parents has dropped dramatically — from more than 90 percent for children born in 1940 to 50 percent for children born in the 1980s. This material relates to a paper that appeared in the 28 April 2017, issue of Science , published by AAAS. The paper, by R. Chetty at Stanford University in Stanford, CA, and colleagues was titled, ‘The fading American dream: Trends in absolute income mobility since […]