Tag Archives: employment

Working Class Has the Blues, and Elites Lack Answers


(Bloomberg View) — With Brexit and the election of Donald Trump, there’s a widespread belief that populism is on the rise in the developed world. Writers and thinkers darkly warn of a crisis if elites don’t accede to the demands — explicit or assumed — of the working class .

As I wrote in a previous post , it’s very hard to define whom to consider part of the elite. That makes it difficult to establish a target for popular anger, and it means that no one knows who, exactly, is expected to respond to the masses’ demands. But there’s […]

Working Class Has the Blues, and Elites Lack Answers


With Brexit and the election of Donald Trump, there’s a widespread belief that populism is on the rise in the developed world. Writers and thinkers darkly warn of a crisis if elites don’t accede to the demands — explicit or assumed — of the working class .

As I wrote in a previous post , it’s very hard to define whom to consider part of the elite. That makes it difficult to establish a target for popular anger, and it means that no one knows who, exactly, is expected to respond to the masses’ demands. But there’s another, related problem […]

BY JULIA B. ISAACS, The Brookings Institution

INTERNATIONAL COMPARISONS OF

ECONOMIC MOBILITY

reedom from the constraints of aristocratic society lured many of our ancestors tocross the ocean to the New World. European visitors such as Alexis de Tocqueville marveled at the economic dynamism and social mobility of American society in the first half of the nineteenth century.1 More recently, immigrants continue to cross our boundaries in search of the promise of the American Dream. Given this history, many Americans believe that the opportunities for moving up the economic ladder are greater in the United States than they arein other countries. But is this widely held assumption of greater […]

Economic mobility nearly halved in the United States since the 1940s


Until not too long ago, the ‘American Dream’ promised a good life for anyone ready to work hard for it. That may have been completely true for Baby Boomers but according to the most recent statistics compiled by economists from Stanford and Harvard, the American Dream is no longer relevant for Generation Y or Z, and definitely not relevant for Millenials either. If children born in 1940 had a 90% chance of earning more than their parents, this dropped fast to only 50% in the 1980s, the team reported in the journal Science. “From the Old to the New […]

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

IMAGE

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 […]

Economic mobility


Economic mobility is the ability of an individual, family or some other group to improve (or lower) their economic status—usually measured in income . Economic mobility is often measured by movement between income quintiles . Economic mobility may be considered a type of social mobility , which is often measured in change in income. Types of mobility[ edit ]

There are many different ideas in the literature as to what constitutes a good mathematical measure of mobility, each with their own advantages and drawbacks. [1] [2]

Mobility may be between generations ("inter-generational") or within a person or groups lifetime […]

Egalitarianism under Pressure: Toward Lower Economic Mobility in the Knowledge Economy?

Discussion PaPer series

IZA DP No. 10664

Simen Markussen Knut RøedAny opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world’s largest network of economists, whose research aims […]

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 […]