How to Increase Intergenerational Mobility

Intergenerational mobility is low in the US. Economist Timothy Taylor discusses findings from a recent study that investigates how we might make improvements: Intergenerational Mobility and Neighborhood Effects. The unique study incorporates 20.5 million Americans and enables them to analyze down to the city block level.

 

The study determined that neighborhood (.5 mile radius around family) is twice as significant in determining upward mobility compared to family status. Two policy options to consider:

 

First, empowering families to move to locations with greater opportunities. For a variety of reasons, low-income families have significant barriers in relocating for better opportunities. The article shows that when low-income people are provided with brokerage service (much like wealthy professionals get when being relocated) they relocate at dramatically higher rates.

 

Second, rebuilding impoverished neighborhoods with the institutions and resources necessary to achieve upward mobility for people who live there. This one is more problematic to measure and therefore more difficult to confidently address. But it does seem to suggest neighborhood development, including economic development, is more critical than isolated aid to families. It seems aid to families without corresponding improvement in societal support systems is not highly effective.