Economic Freedom and Children’s Prosperity

Source: Heartland Institute
by Daniel Sutter

“Income mobility can be measured in two ways. Absolute mobility examines whether children earn more than their parents, adjusting for inflation. Relative mobility looks at whether children from the lowest income households ever move up the income distribution. Harvard’s Raj Chetty has done some of the most important work on U.S. income mobility. His research on the ‘Fading American Dream’ finds a substantial reduction in absolute mobility. Over 90 percent of Americans born in 1940 earned more than their parents at age 30 versus less than half of those born in 1980. A slower overall rate of economic growth and a concentration of income growth on the highest paying jobs in recent decades drive this outcome.” (09/14/21)