Higher levels of social capital, particularly economic connectedness, in a neighborhood or community are strongly correlated with higher rates of economic mobility.
There are significant racial disparities in economic mobility, with black Americans having lower rates of upward mobility compared to white Americans.
Exposure to individuals from different income levels and reducing friending bias are important factors in increasing economic mobility.
Deep dives
Impact of Social Capital on Economic Mobility
Higher levels of social capital, particularly economic connectedness, in a neighborhood or community are strongly correlated with higher rates of economic mobility. People who grow up in areas with more cross-class interaction and social connections tend to have better chances of upward mobility and earning higher incomes as adults.
Racial Disparities in Economic Mobility
There are significant racial disparities in economic mobility, with black Americans having lower rates of upward mobility compared to white Americans. However, Hispanic Americans show more promising mobility trends, with their rates closer to that of white Americans.
Facebook Data and Social Capital
Using anonymized Facebook data, researchers found that measures of social capital, such as economic connectedness, greatly influence economic mobility. Communities with greater cross-class interaction and less friending bias have higher rates of economic mobility.
Influence of Exposure and Friending Bias
Exposure to individuals from different income levels and reducing friending bias are important factors in increasing economic mobility. Creating more mixed-income neighborhoods, integrating schools, and encouraging diverse social connections can positively impact social capital and economic mobility.
Policy Implications and Future Research
The study's findings have implications for policy interventions aimed at increasing economic mobility. Addressing social disconnection, promoting diverse social networks, and targeting exposure to different income levels are crucial areas for further exploration and potential policy action.
Harvard economist Raj Chetty uses tax data to study inequality, kid success, and social mobility. He explains why you should be careful when choosing your grade school teachers — and your friends.
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