Economic mobility

In recent years several large studies have found that vertical inter-generational mobility is lower in the United States than in most developed countries.

"[7] However a more recent paper (2007) found a person's parents is a great deal more predictive of their own income in the United States than other countries.

[12] Another 2007 study ("Economic Mobility Project: Across Generations") found significant upward "absolute" mobility from the late 1960s to 2007, with two-thirds of those who were children in 1968 reporting more household income than their parents[5] (although most of this growth in total family income can be attributed to the increasing number of women who work since male earnings have stayed relatively stable throughout this time[5]).

However, in terms of relative mobility it stated: "contrary to American beliefs about equality of opportunity, a child's economic position is heavily influenced by that of his or her parents.

Research by the Pew Economic Mobility Project shows that the majority of Americans, 84 percent, exceed their parents' income.

A focus on how Americans' rank on the income ladder compares to their parents, their peers, or even themselves over time is a measure of relative mobility.

[19] In addition to the generally accepted factors of gender, race, and education, the geography of an individual's upbringing also affects his or her future family income.

Understanding the impact of geography on intergenerational income mobility is crucial for comprehensively addressing socioeconomic inequality and promoting economic opportunity across different regions.

Moreover, recognizing the influence of geography on income mobility underscores the broader structural determinants of socioeconomic outcomes, emphasizing the importance of addressing disparities in access to resources, quality education, housing affordability, and economic opportunities across various geographical areas.

To distinguish the effects of endogenous variables such as education from geographical or neighborhood factors, the authors employ a sophisticated approach.

They controlled for individual and household characteristics, including education, and combined metropolitan-level variables to account for regional context and house prices.

In doing so, they aim to isolate and measure the specific effects of geographic and community conditions on intergenerational income mobility.

[21] This shows that in addition to lower wages with less growth over time, it is less likely for Black families to experience upward economic mobility than it is for Whites.

The CDC points to discrimination within health care, education, criminal justice, housing, and finance, direct results of systematically subversive tactics like redlining which led to chronic and toxic stress that shaped social and economic factors for minority groups, increasing their risk for COVID-19.

Healthcare access is similarly limited by factors like a lack of public transportation, child care, and communication and language barriers which result from the spatial and economic isolation of minority communities from redlining.

Educational, income, and wealth gaps that result from this isolation mean that minority groups' limited access to the job market may force them to remain in fields that have a higher risk of exposure to the virus, without options to take time off.

Finally, a direct result of redlining is the overcrowding of minority groups into neighborhoods that do not boast adequate housing to sustain burgeoning populations, leading to crowded conditions that make prevention strategies for COVID-19 nearly impossible to implement.

In the United States, the education system has always been considered the most effective and equal process for all individuals to improve one's economic standing.

[29] Despite the increasing availability to education for all, family background continues to play a huge role in determining economic success.

[30] Studies have shown that education and family background has a great effect on economic mobility across generations.

Especially considering the increased competition for college admittances at public schools, students from lower economic quintiles are at an even greater disadvantage.

[31] On the other hand, there are reports that disagree with the idea that individuals can work hard, obtain an education and succeed because there is the notion that America is actually getting poorer and actually more likely to stay poor as compared to any other western country.

Some claim that the idea of the "American Dream" is starting to fade since the middle-class family income has remained constant since 1973.

In 2000, the second generation workers from less industrialized nations have experienced an increase in relative mobility because their average wages have moved closer to those of non-immigrants.

These conclusions predict diminishing correlations in wages from the first and second generations if change in the level of education for each immigrant is considered.