Category Archives: Economic Mobility

The American Dream Is Leaving America – NYTimes.com

The American Dream Is Leaving America – NYTimes.com. [Op-Ed by Kristof on education and economic mobility.]

Wonkblog Post: Poor kids who do everything right don’t do better than rich kids who do everything wrong – The Washington Post

Here: Poor kids who do everything right don’t do better than rich kids who do everything wrong – The Washington Post.

New Book: “The Long Shadow: Family Background, Disadvantaged Urban Youth, and the Transition to Adulthood”

FinalLongShadow-AlexanderNew Book: Karl Alexander et al., The Long Shadow: Family Background, Disadvantaged Urban Youth, and the Transition to Adulthood (2014).  Overview below:

West Baltimore stands out in the popular imagination as the quintessential “inner city”—gritty, run-down, and marred by drugs and gang violence. Indeed, with the collapse of manufacturing jobs in the 1970s, the area experienced a rapid onset of poverty and high unemployment, with few public resources available to alleviate economic distress. But in stark contrast to the image of a perpetual “urban underclass” depicted in television by shows like The Wire, sociologists Karl Alexander, Doris Entwisle, and Linda Olson present a more nuanced portrait of Baltimore’s inner city residents that employs important new research on the significance of early-life opportunities available to low-income populations. The Long Shadow focuses on children who grew up in west Baltimore neighborhoods and others like them throughout the city, tracing how their early lives in the inner city have affected their long-term well-being. Although research for this book was conducted in Baltimore, that city’s struggles with deindustrialization, white flight, and concentrated poverty were characteristic of most East Coast and Midwest manufacturing cities. The experience of Baltimore’s children who came of age during this era is mirrored in the experiences of urban children across the nation.

For 25 years, the authors of The Long Shadow tracked the life progress of a group of almost 800 predominantly low-income Baltimore school children through the Beginning School Study Youth Panel (BSSYP). The study monitored the children’s transitions to young adulthood with special attention to how opportunities available to them as early as first grade shaped their socioeconomic status as adults. The authors’ fine-grained analysis confirms that the children who lived in more cohesive neighborhoods, had stronger families, and attended better schools tended to maintain a higher economic status later in life. As young adults, they held higher-income jobs and had achieved more personal milestones (such as marriage) than their lower-status counterparts. Differences in race and gender further stratified life opportunities for the Baltimore children. As one of the first studies to closely examine the outcomes of inner-city whites in addition to African Americans, data from the BSSYP shows that by adulthood, white men of lower status family background, despite attaining less education on average, were more likely to be employed than any other group in part due to family connections and long-standing racial biases in Baltimore’s industrial economy. Gender imbalances were also evident: the women, who were more likely to be working in low-wage service and clerical jobs, earned less than men. African American women were doubly disadvantaged insofar as they were less likely to be in a stable relationship than white women, and therefore less likely to benefit from a second income.

Combining original interviews with Baltimore families, teachers, and other community members with the empirical data gathered from the authors’ groundbreaking research, The Long Shadow unravels the complex connections between socioeconomic origins and socioeconomic destinations to reveal a startling and much-needed examination of who succeeds and why.

News Article: Where slavery thrived, inequality rules today – Ideas – The Boston Globe

Where slavery thrived, inequality rules today – Ideas – The Boston Globe.

Generation Later, Poor Are Still Rare at Elite Colleges – NYTimes.com

Generation Later, Poor Are Still Rare at Elite Colleges – NYTimes.com.

New Article: “The Blacks Who “Got Their Forty Acres”: A Theory of Black West Indian Migrant Asset Acquisition”

New Article: Eleanor Marie Lawrence Brown, The Blacks Who “Got Their Forty Acres”: A Theory of Black West Indian Migrant Asset Acquisition, 89 NYU L. Rev. 27 (2014).  Abstract below:

The impediments to property acquisition and market success among African Americans are a significant area of inquiry in legal scholarship. The prevailing narrative on the historical relationship between Blacks and property is overwhelmingly focused on loss. However, in the political science, economics, and sociology literatures there is a countervailing narrative of successful property acquisition and retention among what might be termed a “market dominant” subset of migrant Blacks. The most successful subset of Black property owners in the United States today are descendants of Black migrants who were enslaved outside the United States. These free Black migrants, overwhelmingly British subjects originating from the West Indies, are largely invisible in the legal scholarship. Questions have arisen in other disciplines about what differentiated this subset of Black people. Why was their experience of property ownership so different?

Debates in the sociology, political economy, and political science literature have often focused on what Francis Fukuyama has controversially termed “cultural questions,” namely, the view that early West Indian migrants—like Korean or Japanese migrants—possessed a particular set of cultural traits that were distinctly well suited to asset acquisition. This Article focuses on a far more prosaic rationale, contending that the success of West Indian migrants may be rooted in the early grant of what I term “de facto property and contract rights” to West Indian slaves, which allowed their freedmen descendants to become the largest independent Black peasantry in the Americas. Between 1880 and 1924, U.S. immigration officials may have inadvertently selected for propertied migrant “types” when admitting immigrants. Through their own historical exposure to property and contract rights frameworks in the West Indies, as well as internal communal networks which supported informal banking schemes, these Blacks were particularly well placed to take advantage of opportunities for home and business ownership upon arrival in the United States.

The broader point is that there is a glaring omission amidst the “cultural” controversy: What about law? I use the term “law” in this context as it is used by many proponents of new institutional economics, as a proxy for an institutional frame- work that supports property acquisition, regardless of whether this framework is formal (state-supported) or customary. Moreover, the law and economics scholar- ship has focused extensively on institutional frameworks that allow certain religious and ethnic groups to dominate particular sectors, such as Orthodox Jews in the diamond industry or Koreans in the grocery sector. The insights of this literature allow us to interrogate whether Black West Indians had early access to institutions that facilitated contracting and property ownership and if so, whether this institutional history might contribute to their long-term asset acquisition patterns. The question necessarily arises: Why would we think of Black migrants any differently from the way we think of other ethnic and religious minorities who have been successful asset acquirers?

Were your parents rich? Maybe you should pay more in taxes. – The Washington Post

Were your parents rich? Maybe you should pay more in taxes. – The Washington Post.

Two New Articles on Inequality and Mobility in the United States

Two new articles are getting a significant amount of media attention:

1. Raj Chetty et al., Where is the Land of Opportunity? The Geography of Intergenerational Mobility in the United States, NBER Working Paper 19843 (2014).

2. Raj Chetty et al., Is the United States Still the Land of Opportunity? Recent Trends in Intergenerational Mobility?, NBER Working Paper 19844 (2014).

The authors have a nice website, The Equality of Opportunity Project, with links to executive summaries, slides, maps, and the extensive media coverage.  [The media coverage includes helpful summaries as well as some misleading takes or choices of what to emphasize.]

Brief Report from the Economic Mobility Project: “Moving On Up: Why Do Some Americans Leave the Bottom of the Economic Ladder, but Not Others?”

Brief Report from the Economic Mobility Project: “Moving On Up: Why Do Some Americans Leave the Bottom of the Economic Ladder, but Not Others?

New Article: “Growing Inequality and Racial Economic Gaps”

New Article: Thomas W. Mitchell, Growing Inequality and Racial Economic Gaps, 56 How. L.J. 849 (2013).  Available here (you have to scroll through the issue to get to this article).