Economic connectedness, specifically the extent of friendships between the poor and the wealthy, is the most influential factor in predicting economic mobility in the United States.
Social cohesion and civic engagement, while important for community well-being, have a weak correlation with economic mobility and do not significantly contribute to upward economic mobility.
Deep dives
Importance of Social Capital and Mobility
The podcast episode explores the connection between social capital and mobility in the United States. The study, which analyzed data on 21 billion friendships, aimed to determine the factors that influence a child's ability to rise out of poverty. Social capital, referring to one's social wealth and connections, was investigated to identify its impact on economic outcomes. Economic mobility, the ability to move from a lower income status to a higher one, was used as a measure of success. The podcast highlights that social cohesion and civic engagement, although important for community well-being, did not have a strong correlation with economic mobility. However, economic connectedness, the extent of friendships between the poor and the wealthy, was found to be the most influential factor in predicting economic mobility, outweighing other social capital measures and economic indicators.
Exploring Social Cohesion
The podcast examines social cohesion as a component of social capital. Social cohesion refers to the extent of connectedness and familiarity within a community. If neighbors are acquainted and interconnected, it indicates a cohesive community. However, the podcast reveals that social cohesion had a weak correlation with economic mobility. It suggests that while social cohesion may provide benefits and contribute to a pleasant living environment, it does not necessarily facilitate upward mobility.
Examining Civic Engagement
The podcast also delves into civic engagement as another dimension of social capital. Civic engagement entails participation in community activities, volunteering, and trust-building. While civic engagement is commonly associated with a well-functioning community, the podcast reveals that it had limited influence on economic mobility. Although civic engagement may foster a supportive and cooperative environment, it does not significantly contribute to upward economic mobility.
The Significance of Economic Connectedness
The podcast underscores the importance of economic connectedness in determining economic mobility. Economic connectedness refers to the extent of friendships between individuals of different income levels. The study found that economic connectedness was a highly influential factor, surpassing other social capital measures and economic indicators when predicting mobility. Strong friendships and connections with wealthier individuals were strongly correlated with upward economic mobility, while lack of economic connectedness hindered mobility. The podcast emphasizes that economic connectedness plays a crucial role in accessing job opportunities, education, and resources necessary for climbing the economic ladder.
If you're a child born into a poor family in the United States, what are the most important factors in your life that will influence whether or not you're able to rise out of poverty?
To answer that question, we're joined again by Matthew Jackson, William D. Eberle Professor of Economics at Stanford University, and External Faculty at the Santa Fe Institute.
This is part one of a two-part series, and in this episode, Matthew is going to introduce us to a study he was involved in that looked at the data of 21 billion friendships in the US that asked the question: what is it really that allows a child to get ahead?
