This study emphasizes the significance of early exposure to quality neighborhoods and highlights the influence of sociological forces on economic prospects. The findings could inform policymakers on strategies to improve intergenerational mobility in the United States, as mobility levels can vary widely between neighborhoods, even within the same city.
A child’s upbringing location in the United States is increasingly crucial in determining their future economic status, according to research conducted by economists from Brown University, Harvard University, and the U.S. Census Bureau. The study underscores the significant impact of various neighborhood factors, including school district quality, poverty rates, and community social capital, on a child’s lifelong income potential. These findings, presented earlier this year during a World Bank conference comparing global mobility levels, shed light on the importance of early exposure to quality neighborhoods and highlight the role of sociological forces in shaping economic prospects.
The research has the potential to inform policymakers about the most influential decisions that can improve intergenerational mobility, especially in light of the declining rates observed in the United States. John Friedman, a professor of economics at Brown University and co-director of Opportunity Insights, suggests that despite the country’s vast geographic span, mobility disparities exist on both a national and intra-city level. The Opportunity Atlas, developed by Friedman and his colleagues at the Opportunity Insights research program, utilizes U.S. Census and tax data to track children’s outcomes in adulthood.
The data from the Opportunity Atlas reveals striking disparities in adult income based on a child’s neighborhood of upbringing. For example, a child who grows up in one neighborhood can earn an average of $56,000 as an adult, while a child growing up in an adjacent area may earn just $33,000. These findings highlight the significant role that childhood neighborhoods play in shaping future economic success and provide valuable insights for policymakers seeking to address issues of intergenerational mobility in the United States.