Economic Mobility and the American Dream NASCSP 2011 Conference v Economic Mobility and the American Dream NASCSP 2011 Conference September 22, 2011

Agenda Who we are and why we care about economic mobility in America Key findings from the Economic Mobility Project What do we believe the federal government can do to help? Questions and discussion November 19, 2019

The Economic Mobility Project: Who We Are Created in September 2006 Project Mission and Goals: To broaden the focus of the current economic debate in America to include economic mobility To provide the public and policymakers with the best available facts, figures and trends related to economic mobility To explore bipartisan policy solutions and collaboratively evaluate policy proposals that may enhance economic mobility November 19, 2019

EMP: Who We Are (cont’d) Principals from 5 Distinguished Think Tanks The American Enterprise Institute The Brookings Institution The Heritage Foundation The Urban Institute The New America Foundation National Advisory Board of Leading Academics November 19, 2019

Perceptions of Mobility: Enduring American Optimism November 19, 2019

Absolute Mobility Measures how overall standard of living changes over time Refers to a dynamic in which a rising tide lifts all boats Upward absolute mobility often occurs simply because of economic growth Most often focused on by the political right November 19, 2019

Two-thirds have higher family income than their parents Glass Half Full: Two-thirds have higher family income than their parents November 19, 2019

Relative Mobility Measures the ability of individuals to change place relative to others, moving up or down the ranks No matter what is happening to the economy as a whole, people change positions in the income distribution Most often the focus of the political left November 19, 2019

Glass Half Empty: Significant “Stickiness” at the Bottom November 19, 2019

Who are the 42% of Americans Stuck at the Bottom? They are more likely to be female They are more likely to be African American They also are less likely to have a college degree While 82% of those in bottom are doing better in absolute terms, nearly half of Americans don’t leave the bottom over a generation This highlights the importance of looking at absolute and relative mobility together November 19, 2019

African American Downward Mobility November 19, 2019

How is the Middle Class Faring? November 19, 2019

Key Indicators of Mobility in America Social Capital Indicators Financial Capital Indicators Family structure Wealth transfers Parenting skills and education Homeownership School-based relationships Savings (esp. retirement savings Community influences Entrepreneurship Work-related networks Human Capital Indicators Child’s education level Parents education level Health November 19, 2019

Social Capital Detail: Neighborhood Poverty Average Neighborhood Poverty During Childhood Among Black and White Children Born 1955-1970 and 1985-2000 November 19, 2019

Human Capital Detail: Postsecondary Education November 19, 2019

Financial Capital Detail: Personal Savings November 19, 2019

Should the Government Invest in Mobility? 83 percent of Americans want the government to help low- and middle-income people, a sentiment that cuts across party lines But by a 52 to 27 percent margin, Americans believe the government does more to hurt than to help people move up the economic ladder Large majorities believe the government could adopt mobility-enhancing policies that would be effective, including such efforts as making college more affordable, supporting job training and early childhood education November 19, 2019

Renewing the American Dream: A Road Map to Enhancing Economic Mobility in America Set of nonpartisan policy recommendations to ensure that the American Dream of upward mobility is a reality for all Americans, no matter family background or income Based on the best available facts, figures and trends in economic mobility, assembled by Pew’s Economic Mobility Project over the last 3 years Represents consensus of our diverse principals group with perspectives spanning the ideological spectrum November 19, 2019

Why the Road Map is Unique Truly nonpartisan, reflecting ideas and perspectives from each of our principals Grounded in the project’s fact base and in the broader mobility literature Recommendations are supported by the best available evidence Encourages that all policies are implemented with a rigorous evaluation component Includes a strong recommendation for improved datasets and information with which to study the impact of policy on mobility over generations November 19, 2019

Overview Human Capital Promote children’s human capital development early in life Ensure all children and teens have access to effective educational programs Promote enrollment in and completion of postsecondary education Help low-wage workers acquire skills needed for high-quality, well-paid jobs Social Capital Reorient public assistance programs towards mobility enhancement Family formation and teen pregnancy reduction Responsible fatherhood Neighborhoods November 19, 2019

Overview, continued Financial Capital Encourage and promote lifelong savings early in life Provide more equal treatment of savings for higher education Increase access to homeownership as a safe and secure savings vehicle Promote and increase retirement savings Support entrepreneurship throughout the business life cycle Improve data and evaluation to measure economic mobility Enable greater research and evaluation of economic mobility November 19, 2019

Erin Currier, Project Manager Questions? Erin Currier, Project Manager ecurrier@pewtrusts.org 202-552-2025 www.economicmobility.org November 19, 2019