1. The State of Economic Mobility in the U.S.
Government Research Association annual conference
Session 8: Economic Mobility and Income Inequality
August 6, 2014

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3. Defining the American Dream
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4. Enduring American Optimism
believe that they are in control of their economic situation say that they have achieved or will achieve the American Dream say they earn enough or will earn enough to live the kind of life they want believe they will be better off 10 years from now believe that their own kids will be at least as well off as they are now
68%
61%
54%
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6. Absolute Mobility
A measure of how much better or worse a person is doing in absolute dollar terms than their parents at the same age or themselves over time.
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7. Glass Half Full: 84% of Americans Have Higher Family Incomes Than Their Parents
All Adult Children
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8. Relative Mobility
A measure of whether people are able to change their rank in the economic distribution compared to their parents at the same age or themselves over time
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9. 43% are stuck at the bottom
Glass Half Empty: Americans Raised at the Top and Bottom are Likely to Stay There as Adults 4%
40% are stuck at the top
43% are stuck at the bottom
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10. % Change in Median Income
The Distance Between the Rungs of the Income Ladder Has Widened Over the Past Generation
% Change in Median Income
$ 59,300 – $81,700
$ 44,000 – $59,300
Less than $28,900
$ 28,900 – $44,000
$81,700 and above
126%
98%
89%
85%
74%
$39,800 and above
$30,300 – $39,800
$23,400 – $30,300
Less than $15,600
$15,600 – $23,400
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11. There is a Black-White Gap in Absolute Mobility
Whites
Blacks
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12. Blacks Are More Likely to Be Stuck in the Bottom and to Fall From the Middle4%
Whites
Blacks
56%%
32%%
Bottom Quintile
Middle Quintile
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13. Couples are more likely to be economically mobile
White, couple, no college, children
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14. Single white mothers with no college degree move down
White, single woman, no college, children
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15. Single black mothers with no college degree remain stuck
Black, single woman, no college, children
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16. Single black mothers with college degree move up
Black, single woman, college degree, children
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19. Economic Mobility of Utah and its Neighbors
Absolute
Relative Upward
Relative Downward
NATION
17%
34%
28%
Utah
23%
44%
Colorado
19%
43%
31%
Alaska/Idaho/Montana/Wyoming
16%
32%
40%
New Mexico
14%
35%
Nevada
36%
Arizona
15%
33%

20. Key Mobility Drivers Financial Capital Human Capital Social Capital
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21. Social Capital: A Majority of Black Children Live in High-Poverty Neighborhoods
Neighborhoods with:
30% or more poor
20 – 29.99% or more poor 1% 1%
Born 1955 – 1970
Born 1985 – 2000
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22. Human Capital: A College Degree Promotes Upward Mobility and Prevents Downward Mobility3%
Non-college grads
College grads 4%
Bottom Quintile
Top Quintile
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23. Bottom Income Quartile
Financial Capital: Personal Savings Promotes Upward Mobility from the Bottom
50%
71%
Bottom Income Quartile
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24. 21x 6x 8x
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26. Next Step: Educating Policymakers and the Public
What Pew has done:
Strange bedfellows coalition
Bipartisan Road Map
Economic Mobility Caucus
Reporter relationships

27. Next Step: Educating Policymakers and the Public
What advocates can do:
Be thoughtful about language
Engage diverse partners
Share research and analysis
Challenge policymakers to make economic mobility a goal

28. Contact Information
Erin Currier Director, Financial Security and Mobility Diana Elliott Research Manager, Financial Security and Mobility