Conversation with Raj Chetty — Driving Upward Economic Mobility
Sep 21, 2023
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Prof G discusses the role of elite universities in shaping success and upward economic mobility in the US with Raj Chetty, a professor of economics at Harvard. They explore the impact of selective private colleges and address gender and race disparities in economic mobility. They also discuss the importance of cross-class interaction and positive relationships for fostering empathy and growth.
Attending selective private colleges can significantly improve a person's chances of upward mobility.
Raising the minimum wage to $25 an hour is necessary to address income inequality in the auto industry.
Exposure to cross-class interactions and diverse role models can shape aspirations and opportunities for upward mobility.
Deep dives
The Impact of Economic Mobility and Opportunity on Higher Education
In this episode, Raj Chetty, an economics professor at Harvard University, discusses the importance of higher education in achieving economic mobility and opportunity. He highlights research that shows how attending selective private colleges can significantly improve a person's chances of upward mobility. Chetty also addresses the disparities in college admissions and the need to expand access to high-quality colleges for students from lower-income families.
The UAW Strike and the Importance of Unions
This episode explores the recent strikes by the United Auto Workers against Detroit's major automakers and the significance of unions. Chetty emphasizes the strategic approach taken by the UAW in coordinating a multi-firm strike and leveraging certain key points in the supply chain. He discusses the demands made by the auto workers, including a 40% pay increase, a 32-hour work week, and an end to the tiered wage system. Chetty argues for the need to raise the federal minimum wage to $25 an hour to address income inequality in the auto industry.
The Role of Social Capital and Friendship in Economic Mobility
Chetty delves into the impact of social capital and friendship on economic mobility. Drawing from a study that analyzed Facebook data, he highlights the correlation between economic mobility and the connections people have from different income backgrounds. Chetty suggests that exposure to cross-class interactions and diverse role models can shape aspirations and opportunities for upward mobility. He also explores solutions to reduce friendship bias and promote more meaningful connections across class lines in communities, schools, and recreational activities.
The Importance of Male Role Models and Addressing Gender Disparities
This episode addresses the significance of male role models in shaping economic mobility, particularly for young boys. Chetty emphasizes the importance of male mentors and role models in helping boys navigate their social environments and aspire to greater opportunities. He discusses the implications of the absence of male role models and the challenges faced by boys from low-income households. Chetty calls for addressing gender disparities and fostering the presence of male role models in communities, schools, and other spaces to support boys' upward mobility.
Geographic Mobility and Economic Opportunity
Chetty examines the relationship between geographic mobility and economic opportunity. He highlights the declining rates of mobility for lower-income Americans in recent decades. Chetty challenges the notion that certain cities or regions automatically guarantee economic success and upward mobility. He emphasizes the importance of investing in local communities, improving access to opportunities, and creating pathways for economic mobility at the neighborhood level. Chetty suggests leveraging existing success stories within the United States, rather than solely looking to other countries as role models.
Raj Chetty, the William A. Ackman Professor of Economics at Harvard University and the Director of Opportunity Insights, joins Scott to discuss research around higher education, specifically how elite universities shape who succeeds in the US. We also hear about broader trends regarding upward economic mobility and the role a child’s environment plays in creating opportunities for growth.
Follow Prof Chetty’s work at Opportunity Insights here.
Scott opens with his thoughts on the UAW strike, specifically how it points to the need for a minimum wage that matches our nation’s productivity level.