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Wealth & Income Inequality

Intergenerational Mobility: Can You Out-Earn Your Parents?

How economists measure the likelihood of moving to a different income level than the family someone grew up in - and why it varies so much by place.

Intergenerational mobility measures how likely someone is to end up in a different economic position than the family they grew up in - whether income, education, or overall economic status tends to persist across generations, or whether it changes substantially from one generation to the next.

Two different ways to measure it

Absolute mobility asks a simple question: does each generation, as a whole, earn more (adjusted for inflation) than the previous generation did at the same age? Relative mobility asks a different question: how much does a specific child’s position within the income distribution depend on their specific parents’ position - regardless of whether the whole economy is growing.

Why both numbers can move in different directions

Absolute mobility can decline even while the economy grows overall, if that growth is concentrated at the top of the income distribution rather than spread broadly - most people can still end up not exceeding their parents' earnings, even in a growing economy. This is part of why economists track both measures rather than relying on either one alone.

Why mobility varies so much by location

Research consistently finds that intergenerational mobility varies significantly by region within the same country - some areas see children reliably out-earn their parents’ relative position, while others see income status persist much more strongly across generations. Factors researchers point to include local school quality, residential segregation, and access to stable employment and social networks.

Treating a national mobility statistic as true everywhere

A country's overall mobility rate can mask enormous regional variation - a national average combines areas with genuinely high mobility and areas with genuinely low mobility into one number. Local and regional mobility data tells a much more complete, and often quite different, story than a single national statistic.

Key takeaways
  • Intergenerational mobility measures how much economic status persists or changes across generations.
  • Absolute mobility tracks whether each generation earns more than the last; relative mobility tracks how much a child's position depends on their parents'.
  • Absolute mobility can decline even during economic growth if that growth is concentrated at the top.
  • Mobility varies significantly by region - national averages can mask large local differences.
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