September 26, 2013
By Donald Schneider
International comparisons of economic mobility are tricky. They presume that mobility is a function of opportunity and merit. But “immobility” can arise from a variety of factors.
For example, social rigidities more commonly associated with developing economies — where economic success can depend on traits like bloodline or religion — can produce intergenerational persistence of higher or lower earnings. In meritocratic countries, the high returns of education can also perpetuate income differences across generations: parents who value education are more likely to raise children who value education.
Similarly, relative mobility statistics are not ideal for illustrating general flourishing in a country. The more mobility there is, the more people are moving down the economic ladder, as well as up. Compared to our European counterparts, it’s true that we’re technically slipping on this basis, especially for those starting at the bottom. But this focus neglects strong absolute mobility in the U.S.: 93 percent of those born into the bottom quintile surpass their parents’ income, a truer mark of opportunity.
Until recently, analysts were often stuck with aggregated statistics that concealed as much as they revealed. That’s why the new data on city-by-city variation in Americans’ economic mobility is so groundbreaking.
Areas with similar levels of inequality and middle class sizes can vary drastically in terms of mobility. Often, the variance can be explained by differences in the makeup of families within the community – like the rate of divorce or single motherhood. So more nuanced data are allowing us to better understand where people are moving up the ladder and, more important, why.
Upward mobility does not require the often chaotic openness of a developing economy. We don’t need to recreate the Wild West. Rather, we need a heightened focus on the social conditions of the poor, security for those in the middle and opportunity for all. For U.S. policy makers, the primary objective should be to sustain the fundamental institutions of mobility: family, education and a culture of work and saving.
- Donald Schneider is a research assistant in the Center for Policy Innovation at the Heritage Foundation.
Originally appeared in The New York Times.
Read More >>
Heritage's daily Morning Bell e-mail keeps you updated on the ongoing policy battles in Washington and around the country.
The subscription is free and delivers you the latest conservative policy perspectives on the news each weekday--straight from Heritage experts.
The Morning Bell is your daily wake-up call offering a fresh, conservative analysis of the news.
More than 450,000 Americans rely on Heritage's Morning Bell to stay up to date on the policy battles that affect them.
Rush Limbaugh says "The Heritage Foundation's Morning Bell is just terrific!"
Rep. Peter Roskam (R-IL) says it's "a great way to start the day for any conservative who wants to get America back on track."
Sign up to start your free subscription today!
The Heritage Foundation is the nation’s most broadly supported public policy research institute,
with hundreds of thousands of individual, foundation and corporate donors. Heritage, founded in
February 1973, has a staff of 275 and an annual expense budget of $82.4 million.
Our mission is to formulate and promote conservative public policies based on the principles of free
enterprise, limited government, individual freedom, traditional American values, and a strong national
defense. Read More
© 2014, The Heritage Foundation Conservative policy research since 1973