Economic Mobility Research Articles

Intergenerational income mobility and returns to education in Southern Brazil

This study analyzes intergenerational income mobility in Southern Brazil. Previous research has demonstrated that Brazil continues to be one of the least mobile countries in the world; however, the country has experienced strong socioeconomic advances in recent decades that may have affected mobility. The use of data from the 1982 birth cohort in the city of Pelotas, in the extreme south of Brazil, makes this one of the first studies to estimate mobility using direct observations of parental and filial income in Brazil. Using various estimation techniques, the results reveal relatively high income mobility compared with past Brazilian standards. Mobility is higher for nonwhites, extremely similar across genders, and higher among the poor. The findings indicate that increased government investment in education and reduced returns to education in recent decades are possible channels.

Household income mobility and adolescent subjective well-being in China: Analyzing the mechanisms of influence

BackgroundThe relationship between adult happiness and income has been a topic of extensive discussion. However, among children and adolescents, who are not directly engaged in economic activities, the relationship between household income over time and happiness is more complex and remains less explored. MethodsWe used nationally representative data from the China Family Panel Study (CFPS) from 2012 to 2018. The analytic sample consisted of 3,607 Chinese adolescents aged 10 to 19 years in 2018. Using an ordinary least squares model, we investigated the associations of 2-year (2016–2018), 4-year (2014–2018), and 6-year (2012–2018) household income mobility (i.e., upward mobility and downward mobility) with adolescents’ subjective well-being (i.e., happiness and depression) in 2018. We further explored the potential mediating effects of parental care on these associations and whether they were moderated by adolescent age, adolescent sex, and initial household economic status. ResultsWe found that upward mobility in household income was associated with decreased subjective well-being and parental care mediated this association. Furthermore, we found that the effects of upward mobility on adolescent subjective well-being varied by age, sex, and initial household economic status. Additionally, downward income mobility did not significantly impact adolescents’ subjective well-being. ConclusionOur findings emphasized that economic progress and upward mobility should not come at the expense of parental care, as this would decrease adolescents’ subjective well-being. Collaboration between the government and families is crucial to address the conflicts between work and family responsibilities, ensuring that parents are available and supportive to their children.

Brand envy in economic disparity: Understanding and mitigating malicious envy towards brands among consumers perceiving limited economic mobility

This research explores how consumers’ perceptions of economic mobility influence their emotions towards brands. We conducted six online experiments and four surveys involving a total of 1,236 participants. Our findings suggest that individuals who believe they have limited opportunities for economic advancement experience malicious envy towards successful brands. This envy stems from a perception that the brand’s success is undeserved. Furthermore, this envy is exacerbated when brands are not seen as engaging in charitable giving. Interestingly, the effect of perceived economic mobility on envy dissipates for underdog brands, which are perceived as having exerted more effort to achieve success. Malicious envy due to low perceived economic mobility leads to negative consequences such as boycotts and negative word-of-mouth. This study addresses a gap in marketing research, traditionally focused on benign envy. By deepening our understanding of envy, this research offers strategies for managing brand relationships with consumers in less mobile societies.

The Latino Middle Class

Latino educational gains over time and income mobility portend a burgeoning Latino middle class. In this article, we critically review scholarship on the Latino middle class, from theoretical perspectives aiming to explain Latino experiences to empirical research investigating mechanisms that promote, and barriers that thwart, upward mobility. Studies suggest that the Latino middle class is distinctive for many reasons—from structural barriers to asset accumulation, legal status precarity for self or family, financial responsibility for class-disadvantaged kin, and negative controlling images that bog down class ascension. Scholars’ recent efforts to decouple middle-class status from Whiteness is an important contribution that undercuts the notion that melding into Whiteness is the desired outcome of middle-class integration. In addition to the utility of education to upward mobility, we contend that studies of middle-class pathways should expand to recognize that Latinos are engaging in workarounds—career paths not requiring a bachelor's degree, such as business ownership or credentialed professions. Workarounds are an intervention that accounts for routes to mobility that are eclipsed by conventional conceptions of mobility. Ultimately, we argue that Latinos are attaining middle-class status even as they are racialized, thereby expanding the minoritized middle class.

It's not who you know, but who you are: Explaining income gaps of stigmatized-caste business owners in India.

Scholars across disciplines and around the world have diverted research attention to rising income inequalities across groups and strategies to reduce them. The literature has broadly identified human capital and social capital as two potential tools to facilitate economic mobility and to reduce inequalities. However, it is not known whether these tools work equally well for stigmatized groups, particularly in societies with systemic inequalities. Analyzing data from a pan-India survey, we show that business owners from stigmatized groups (i.e., Dalits in India, who are stigmatized as untouchables) experience a business income gap of around 16% compared to others, including those business owners who are from communities that are disadvantaged but are not similarly stigmatized. We find that, instead of being reduced, this gap in fact increases at higher levels of social capital, especially bridging social capital, illustrating the social processes of stigmatization that limit the benefits that Dalits can reap from social capital. By contrast, Dalits can reap similar income benefits as others from human capital. Our results show that human capital helps stigmatized groups mitigate the implications of stigma, but social capital does not.

Breaking down barriers: exploring the impact of social capital on knowledge sharing and transfer in the workplace

The COVID-19 pandemic has posed formidable challenges to economic mobility and corporate expansion. Among these challenges is its pronounced effect on knowledge innovation, a cornerstone upon which many organizations depend. To re-establish the flow of internal knowledge, organizations are compelled to refine their knowledge management strategies and amplify employees’ motivation and eagerness to share and transfer information. This study delves into the influence of knowledge management processes on employees’ knowledge-sharing and transfer behaviors, viewed through the lens of the social exchange theory. It also probes the role of social capital in fostering and augmenting employees’ involvement in refining these processes. Data was gleaned from 30 information service firms in mainland China, resulting in 483 valid responses. Our findings highlight that both relational and structural forms of social capital positively influence the knowledge management processes, subsequently enhancing employees’ knowledge-sharing and transfer behaviors.

Internet use, income mobility and the expansion of the rural middle-income group: Evidence from China

The expansion of the rural middle-income group has been a global focus as it contributes to narrowing income gaps and reducing social inequality. Using data from the China Family Panel Studies (CFPS), this study examines the impact of Internet use on the mobility of rural low-income groups to the middle-income group from the perspective of income mobility. Controlling for household and provincial-level variables, the results of this study indicate that Internet use significantly promotes the mobility of rural low-income groups to the middle-income group, thereby facilitating the expansion of the rural middle-income group. These conclusions hold even after conducting endogeneity and robustness tests. Mechanism analysis shows that household entrepreneurship and non-agricultural employment are crucial pathways through which Internet use facilitates the mobility of rural low-income groups to middle-income groups. Further investigation shows that mobility from rural low-income to middle-income groups is more difficult in central-western regions and among those with lower levels of education. Internet use exacerbates the “digital divide” between different areas and education groups. In particular, the effect of Internet use in promoting mobility from rural low-income to middle-income groups is more pronounced in the eastern regions and among those with higher levels of education. The results of this study provide new evidence on the role of Internet use in expanding the rural middle-income group.

What Drives Millennials' and Gen Z's Intentions to Participate in Cash Waqf Linked Sukuk? Perspectives from Islamic Altruism

Waqf, in its conceptual essence, has the potential to enhance social and economic mobility, thus alleviating poverty. Nevertheless, the effective collection of waqf faces numerous challenges, particularly in adapting to the needs of Millennials and Generation Z. The objective of this research attempt is to examine how Islamic altruism moderates the impact of crucial determinants of cash waqf linked sukuk (CWLS) on fund collection. By employing the Structural Equation Model-Partial Least Squares (SEM-PLS) method, data were collected from 283 respondents belonging to the Indonesian millennial and Gen Z demographics via a self-structured questionnaire. The results emphasize that Islamic altruism does not play a substantial role in moderating the determinants of CWLS among the economic variables associated with Islam. Regarding domain-based economic decisions, individual contributions to CWLS are not reliably moderated by Islamic altruism. Despite adhering to the waqf principle, Islamic altruism, which entails the voluntary provision of assistance to others without personal gain, does not exert any influence on economic motivations for participating in CWLS. Furthermore, this research indicates that income level, religiosity, sharia financial literacy, and a strong inclination towards CWLS significantly influence the intention of Millennials and Generation Z to participate. Indonesia, being a Muslim-majority nation, could potentially witness significant progress in the field of financial waqf, specifically in the area of CWLS. The research's practical implications offer significant insights and direction for stakeholders, aiding in the formulation of efficacious policies and initiatives that promote CWLS fundraising among Millennials and Generation Z. This is novel research, and from the perspective of Islamic altruism theory, there has been a dearth of studies examining the critical factors that determine individual contribution in CWLS.

Your friends, your credit: Social capital measures derived from social media and the credit market

We document a robust correlation between the Bricker and Li (2017) social trust indicator and the Chetty et al. (2022a) economic connectedness measure. The two indicators predict upward income mobility independently to a comparable extent. The Bricker–Li indicator is defined as the average credit score of a community, and the Chetty et al. measures are based on Facebook befriending data. The consistency and complementarity between these two indicators underscore trust as a crucial ingredient of social capital.

Nutritional, economic, social, and governance implications of traditional food markets for vulnerable populations in sub-Saharan Africa: a systematic narrative review

Traditional food markets in sub-Saharan Africa (SSA) are pivotal urban spaces, especially for vulnerable populations. These markets are vibrant hubs for commerce, cultural exchange, and social interaction, yet they face challenges such as food safety issues, inadequate infrastructure, and regulation that is a complex mix of informal mechanisms in need of a balanced degree of formalization. Rapid urbanization in SSA and the vulnerabilities of informal settlements underline their enduring importance. The COVID-19 pandemic further highlighted their crucial role in promoting food access, supporting local economies, and preserving social connections during crises. However, a comprehensive understanding of their multifaceted impact on urban life remains limited. This study provides a systematic narrative literature review with the aims of mapping the existing literature and evaluating their complex impact on vulnerable communities. The review employed a systematic search strategy, encompassing research studies and gray literature. It highlights the geographic distribution of studies across SSA, with a concentration in East and Southern Africa. Nutrition is the most explored theme, followed by governance, with economics and social aspects relatively under examined. Traditional food markets are vital sources of affordable food for the urban poor and serve as pillars of economic mobility, providing livelihoods and employment opportunities, especially for women, and act as hubs for diverse groups to interact. Market governance is complex, often marked by policy misalignments due to insufficient collaboration among stakeholders. Policy initiatives to support traditional food markets in SSA should focus on formalization and context-aware regulations to enhance efficiency and vendor security, investment in market-related infrastructure, and nutrition-focused policies and economic support for vendors. Further research is needed to bridge thematic and regional gaps, and to inform evidence-based policy measures to support these vital urban institutions.

Absolute income mobility obscures marginalized children’s disadvantages

Intergenerational mobility captures the distance between the socioeconomic positions of parents versus their adult children. Researchers measure this distance in absolute and relative units, such as absolute dollars and relative ranks. Absolute and relative mobility often diverge. For example, absolute mobility can rise while relative mobility declines. How should scholars and policymakers understand this divergence? We conclude that they should understand it as follows: absolute mobility is less reflective than relative mobility of marginalized children's socioeconomic disadvantages. We base this conclusion on analyses of survey, administrative, and simulated data on income mobility in the contemporary United States. We analyze multiple points of difference in mobility, which facilitates the recognition of several asymmetries. First, high-income children's experiences weigh more heavily in absolute-mobility trends than low-income children's experiences, particularly when economic growth is positive. Second, this asymmetry is more characteristic of absolute- than relative-mobility trends. Third, absolute-mobility differences across demographic groups are more prone than relative-mobility differences to obscure marginalized groups' socioeconomic disadvantages. These asymmetries have policy implications: We caution that focusing on absolute mobility as a policy target can divert attention away from society's most disadvantaged children.

Preterm Birth, Family Income, and Intergenerational Income Mobility

Preterm birth (PTB) has been associated with lower income in adulthood, but associations with intergenerational income mobility and the role of family socioeconomic status (SES) as modifying factor are unclear. To assess whether the association between PTB and income differs according to family SES at birth and to assess the association between PTB and intergenerational income mobility. This study comprised a matched cohort of live births in Canada between January 1, 1990, and December 31, 1996, with follow-up until December 31, 2018. Statistical analysis was performed between May 2023 and March 2024. Preterm birth, defined as birth between 24 and 37 weeks' gestational age (with gestational age subcategories of 34-36, 32-33, 28-31, and 24-27 weeks) vs early and full term births (gestational age, 37-41 weeks). Associations between PTB and annual adulthood income in 2018 Canadian dollars were assessed overall (current exhange rate: $1 = CAD $1.37) and stratified by family income quintiles, using generalized estimating equation regression models. Associations between PTB and percentile rank change (ie, difference between the rank of individuals and their parents in the income distribution within their respective generations) and upward or downward mobility (based on income quintile) were assessed using linear and multinomial logistic regressions, respectively. Of 1.6 million included births (51.1% boys and 48.9% girls), 6.9% infants were born preterm (5.4% born at 34-36 weeks, 0.7% born at 32-33 weeks, 0.5% born at 28-31 weeks, and 0.2% born at 24-27 weeks). After matching on baseline characteristics (eg, sex, province of birth, and parental demographics) and adjusting for age and period effects, PTB was associated with lower annual income (mean difference, CAD -$687 [95% CI, -$788 to -$586]; 3% lower per year), and the differences were greater among those belonging to families in the lowest family SES quintile (mean difference, CAD -$807 [95% CI, -$998 to -$617]; 5% lower per year). Preterm birth was also associated with lower upward mobility and higher downward mobility, particularly for those born earlier than 31 weeks' gestational age (24-27 weeks: mean difference in percentile rank change, -8.7 percentile points [95% CI, -10.5 to -6.8 percentile points]). In this population-based matched cohort study, PTB was associated with lower adulthood income, lower upward social mobility, and higher downward mobility, with greater differences among those belonging to economically disadvantaged families. Interventions to optimize socioeconomic outcomes of preterm-born individuals would need to define target population considering SES.

The impact of international sanctions on income mobility: Evidence from Iran

AbstractThis article studies the impact of international economic sanctions on income mobility at the Macro level. A series of economic sanctions were imposed on Iran during 2008–2015 and lifted to some extent in 2015. Using some pseudo‐panel datasets, constructed based on 18 household surveys during 2001–2018, we investigate the impact of sanctions on four income mobility measures: directional income movement, positional movement, time dependence, and mobility as an equalizer of longer‐term incomes. The results show that in the sense of directional income mobility, the sanctions are followed by welfare losses for all income groups, with richer groups experiencing larger losses than poorer ones. The rich face income declines that are larger compared to those experienced by the poor, and this causes: first, richer (poorer) groups to face a higher probability of moving downward (upward) in relative terms, thus we see an increase in positional income mobility (and also time dependence) with the sanctions; and second, an increase in mobility in the sense of equalizer of longer‐term incomes. We get the opposite results with the removal of sanctions.

Income mobility and crime: a hierarchical cluster analysis on principal components for 27 OECD countries

PurposeThe aim of this paper is to investigate the linkages between intergenerational income mobility and crime for 27 OECD countries, considering different types of crime, family ties, enforcement, in terms of punishment rate and perceived quality of the legal system, redistributive outcomes and government expenditure.Design/methodology/approachUsing the Global Database of Intergenerational Mobility (GDIM), the empirical analysis is conducted by coupling the principal components analysis with the hierarchical clustering. The variance tests verify the robustness of the clusters.FindingsIncome mobility is higher in those countries where there is high public investment devoted to education and high perception of rule of law to buffer the adverse effects of crime on income mobility. The redistributive policies must be oriented to better the wealth distribution and not only income equality opportunity to decrease crime and to increase income mobility. A plausible existence of “hidden” income mobility emerges from the linkages between income mobility and frauds.Social implicationsMore redistributive policies for education, income and wealth equality should be applied in those countries with low income mobility and high violent crime rates; higher punishment rates should be applied to reduce the rates of thefts and frauds in high income mobility countries.Originality/valueThe main contribution is the identification of what type of crime leads to downward income mobility, as well as the role of perceived quality of the legal system, government and family ties in the association between income mobility and crime, suggesting also the potential existence of “hidden” income mobility.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-07-2023-0520

‘Whatever we have is what we eat’: How marginalised urban populations in the Philippines and Thailand experienced their food environments, food security and diets through COVID-19

This qualitative cross-country comparative study investigated the lived experience of marginalised urban populations (unemployed, daily wage earners/street vendors, and internal/external migrants) in Manila (Philippines) and Bangkok (Thailand) on food environments, food security and diets during COVID-19. Semi-structured interviews were conducted with individuals (n = 59) in April–May 2022. Thematic analysis revealed loss of income and strict mobility restrictions (Philippines) as key drivers of dietary changes and hunger. Common narratives included financial hardship, loss of personal agency, and daily survival. Coping strategies included drawing on social networks, cash and food aid, and ‘scheming’ around restrictions. Contextualised crisis policy planning should explicitly consider the lived experience of marginalised populations for future shocks.

Task allocation planning based on hierarchical task network for national economic mobilization

Task allocation planning based on hierarchical task network for national economic mobilization

An application of LASSO and multiple imputation techniques to income dynamics with cross‐sectional data

This paper introduces, validates, and applies a Least Absolute Shrinkage and Selection Operator with multiple imputation by Predictive Mean Matching (LASSO‐PMM) method to estimate intra‐generational income dynamics from cross‐sectional data. We validate the method using 36 harmonized panel data sets in four Latin American countries and apply it to cross‐section data from 43 countries across the world. Results show that LASSO‐PMM predictions are statistically indistinguishable from actual household poverty rates, mobility indicators, and income or consumption changes. These findings suggest that estimating economic mobility using a LASSO‐PMM approach may accurately approximate actual income dynamics when panel data are unavailable.

The View from Above and Below: Subjective Mobility and Explanations of Class, Race, and Gender Inequality

Abstract Popular explanations of inequality as the result of individual failings rather than structural processes are powerful cultural mechanisms that legitimize and reproduce inequality in the United States. How might individuals’ experiences of downward or upward mobility shape the explanations they give? We argue that perceived experiences of economic mobility may not only shape how Americans understand economic inequality but may also impact their beliefs about social inequalities more broadly. Using proportionally representative survey data of 1110 U.S. residents, we find that those who perceive that they currently occupy a lower economic class than when they were growing up (i.e., they experienced subjective downward mobility) were more likely than class-stable individuals to reject individualistic explanations of economic inequality and embrace structural ones. By contrast, the upwardly mobile were more likely to reject structural explanations. We find that mobility is similarly related to the likelihood of giving individualistic or structural explanations for race and gender inequality as well. Downward mobility is also associated with greater support of redistributive policies related to economic as well as gender and race inequality. These findings suggest that economic mobility may influence popular explanations of inequality and support for redistributive policy not only related to class inequality but for multiple axes of inequality.

Can Fair Share Policies Expand Neighborhood Choice? Evidence From Bypassing Exclusionary Zoning Under Massachusetts Chapter 40B

Opening up neighborhoods that offer greater opportunities for social mobility to low- and moderate-income households remains a challenge in the United States. Exclusionary zoning practices act as a barrier to current efforts by restricting the supply of affordable housing. In this paper, we examine whether fair share policies that seek to bypass these restrictive zoning practices offer one potential solution. Focusing on Massachusetts Chapter 40B, we find clear evidence that such policies build affordable housing in neighborhoods with strikingly greater opportunities for social mobility than are otherwise available to low- and moderate-income households. Leveraging novel data on 40B development addresses linked to a wide range of public and administrative records, we find that 40B produces affordable units in neighborhoods with greater economic mobility, higher performing schools, greater social capital, less pollution, better health outcomes, and lower incarceration rates than both the typical neighborhood in Massachusetts and those available to beneficiaries of the state’s Low-Income Housing Tax Credit, Housing Choice Voucher, and public housing programs. Consistent with previous research on policies that have segregated affordable housing and opportunity, we also find that neighborhoods with affordable 40B units are whiter and more affluent than average. An examination of underlying policy mechanisms suggests that 40B’s ability to bypass exclusionary zoning plays a central role in explaining differences in neighborhood characteristics between 40B and other programs. We further find little evidence to support concerns that 40B’s zoning override leads to affordable 40B units being built in the least advantaged areas of municipalities, in polluted zones, or near highways, though a non-trivial share of units are located in industrial zones. These results suggest that policies like 40B may be valuable complements to other major housing programs in the United States.

On sustainable land rent

IntroductionThis paper introduces the concept of Sustainable Land Rent (SLR), providing a comprehensive, multidimensional exploration anchored in the dynamics of its origin, separability, mobility, valuation, and the imperative for equitable distribution. SLR capitalizes on the economic mobility of land’s value to enhance community welfare and promote environmental sustainability. Advocating for the systematic institutionalization of SLR, the research tackles the complex challenge of distinguishing land value from improvements.MethodsEmploying traditional Price, Cost, and Income (PCI) methods as practiced in North America, the study addresses the technical challenge of inseparability by estimating and integrating the SLR value within each of these methods. The methodology clarifies the valuation process and establishes an objective framework for resource allocation and negotiation between public and private sectors.Results and discussionFurthermore, our findings highlight SLR’s vital role in advancing public revenue generation and underscore its function as an innovative catalyst for integrating sustainability into economic valuation models and practices in real estate development and urbanization.