How Much of Your Results Are Driven by Large Effects?

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Large cities are very, or going to be more dynamic than rural areas on all these dimensions we're talking about. There's a lot more opportunity for choosing what parts of the world do you want to connect with,. School, neighborhood, social hall, religious, community and so onto. But actually, when you look at these statistics, there are many cases where it's the rural areas where you see higher levels of upward mobility and greater economic connectedness.

Economist Raj Chetty of Harvard University talks about his work on economic mobility with EconTalk host Russ Roberts. The focus is on Chetty's recent co-authored study in Nature where he finds that poor people in America who are only connected to other poor people do dramatically worse financially than poor people who are connected to a wider array of economic classes. The discussion includes the policy implications of this result as well as a discussion of Chetty's earlier work on the American Dream and the challenge of Americans born in recent decades to do better financially than their parents.