Pathways
to economic
mobility
What enables economic mobility? We analyzed hundreds of research studies and surveyed thousands of Americans to identify 28 life experiences that drive lifetime income. We call them the Mobility Experiences.
Background on
Economic Mobility
in the United States
Economic mobility, a measure of growth in income or wealth, has been in decline in the US for decades according to absolute measures. Ninety percent of all children born in the 1940s would go on to earn more than their parents. Less than 50% of those born in the 1980s could say the same. Reviving economic mobility is not only critical to improving quality of life for millions of Americans, but also to unleashing growth across the economy and renewing social cohesion.
Absolute intergenerational mobility in the United States
Percent of children earning more than their parents
Source: Raj Chetty, "14 charts: Big findings on opportunity and mobility we should all know,” Brookings Institute, January 11, 2018
Growing up, being really impoverished, you don’t think about the future that much. You are in the mindset of, ‘Where’s my next meal? Am I going to have a place to live next month? Are we going to have Christmas?’ There were birthdays that went by with no cake or presents. Growing up in this poor mentality sticks with you, and it’s not always the money; sometimes it’s the mindset. Growing up poor trained me to not think about the future.”
Michelle, age 35, OH
Michelle, age 35, OH
Research Summary
Mobility Experiences are life experiences that can significantly impact a person’s lifetime income. By combining findings from over 230 research studies with the lived experiences of over 4,000 Americans, we found strong evidence for 28 such experiences. These occur across varied phases of life, from birth and childhood to adolescence and adulthood, and can be organized into six domains. While we evaluate their impact on economic success (i.e. lifetime income), many also impact individuals’ sense of power, autonomy, or connection and belonging to their communities.
The 28 Mobility Experiences
Obtaining a high-paying first job has long-term impact on future income. Starting wages significantly affect long-term wage differentials, 60% of which are still observable four years later. Organizations providing more opportunities for advancement and larger professional networks further boost lifetime income.
This experience, on average,
increases lifetime income by 24%
Receiving job or skills training can improve earnings once individuals become employed. Structured job skills training programs, such as Year Up and Work Advance, are found to increase participants' earnings by up to 40% in the year following program completion compared to non-participants' incomes.
This experience, on average,
increases lifetime income by 19%
Experiencing involuntary unemployment leads to lasting income disparities, with studies showing a 30% reduction in earnings a decade after job loss. This disproportionately impacts low-wage workers, exacerbating income inequality, and contributes to adverse health effects due to loss of benefits and increased stress.
This experience, on average,
increases lifetime income by 10%
Negative interactions with the criminal justice system, including incarceration or arrest without charge, significantly reduce employment opportunities and lifetime earnings. Individuals with criminal records experience a 3 to 10% lower likelihood of employment, while those detained pre-trial or arrested as minors face substantial lifetime income losses.
This experience, on average,
increases lifetime income by 9%
Access to stable and affordable housing from childhood correlates with higher adult earnings, particularly for those in public or voucher-assisted housing. However, historical inequalities in homeownership (such as redlining), have led to disparities in homeownership rates, notably among Black populations, with recent declines observed due to higher rates of loan denials.
This experience, on average,
increases lifetime income by 8%
Access to physical and digital infrastructure influences worker success—those with reliable transportation and internet service earn 7 to 8% more. The importance of such infrastructure became evident during the pandemic, highlighting how digital connectivity became essential for participation in remote work, schooling, community support, and access to certain public benefit programs and relief programs.
This experience, on average,
increases lifetime income by 7%
Living in a high-income neighborhood greatly influences income outcomes. Studies indicate that children who transition from low- to high-mobility areas earn 8 to 14% more later. Access to grocery stores, financial institutions, better job opportunities, etc. is more readily available in such neighborhoods, emphasizing the importance of location in shaping economic mobility.
This experience, on average,
increases lifetime income by 7%
Attending college and graduating significantly increases lifetime income. Graduates earn about $32,000 more than those with only a high school diploma in the same subject area. However, first-generation college students are more than twice as likely to drop out, often due to a lack of guidance compared to their peers with college-educated parents.
This experience, on average,
increases lifetime income by 39%
Choosing a field of study has strong implications for future income. For example, STEM majors earn 80 to 140% more than their non-graduate peers. Despite the higher earning potential in STEM fields, Black and Hispanic students are underrepresented in these majors, highlighting broader inequalities in educational opportunities.
This experience, on average,
increases lifetime income by 36%
High school education greatly influences income. Diploma-holders typically earn over 40% more than those without diplomas, but this impact varies based on teacher effectiveness and school quality. Further, white students graduate at rates 7 to 15% higher than Hispanic, Black, and American Indian/Alaskan Native peers, often linked to differences in school poverty levels.
This experience, on average,
increases lifetime income by 16%
Participating in extracurricular activities during high school and/or college correlates with a 3.8 to 4.5% increase in future earnings. These activities foster the development of crucial interpersonal skills necessary for success in the workforce, often opening doors to further advancement opportunities.
This experience, on average,
increases lifetime income by 7%
Preschool's impact on earnings is debated. While some studies link high-quality programs to increased income, other research suggests a muted or negative effect. For instance, a study found lower academic performance and higher absenteeism among low-income pre-K participants, with disparities affecting Black and Hispanic children's access.
This experience, on average,
increases lifetime income by 4%
School disciplinary actions impact young adults’ future earnings, with suspended or expelled students earning roughly $1,600 less by age 26 compared to their non-disciplined peers. This potentially stems from delayed entry into the workforce after grade repetitions due to multiple suspensions and disproportionately burdens Black and Latino boys.
This experience, on average,
increases lifetime income by 4%
Owning a business entails high risks but potentially high rewards, as successful self-employed entrepreneurs with lower education levels may out-earn salaried peers. However, with less than 20 percent of startups surviving beyond five years, failed business ventures pose a risk of negative economic mobility, particularly for owners without backup plans.
This experience, on average,
increases lifetime income by 15%
Financial inclusion is unevenly accessible, particularly for individuals earning low wages and minority business owners, who encounter difficulties in securing financial credit and loans. For instance, 17% of families earning less than $25,000 are unbanked compared to less than 1% of those earning over $50,000.
This experience, on average,
increases lifetime income by 8%
Employees with benefits like healthcare and retirement contributions report higher workplace satisfaction and productivity, contributing to increased earnings. Although, some studies indicate that individuals, particularly women, might accept lower salaries for such benefits, potentially offsetting any net earnings increase.
This experience, on average,
increases lifetime income by 7%
Among low-wage earners, accessing public benefits and programs not only contributes to economic mobility by positively affecting earnings, but also by providing a sense of security. For example, the Supplemental Nutrition Assistance Program mitigates household food insecurity by 12.8 percentage points.
This experience, on average,
increases lifetime income by 6%
Access to student loans is essential for college attendance, but burdensome repayments hinder economic mobility. While debt can motivate higher earnings, excessive loans negatively impact academic performance and graduation rates, with over $10,000 in debt leading to a 20 percent decrease in graduation likelihood.
This experience, on average,
increases lifetime income by 5%
Receiving mentorship during adolescence positively impacts future earnings. High school students with in-school mentors achieve better grades, longer tenure, and higher earnings. However, lower-income students, who benefit most, often lack access to mentoring. Mentorship's benefits are amplified when the mentor is not a family member, expanding networks and opportunities.
This experience, on average,
increases lifetime income by 25%
Childcare responsibilities disproportionately affect women's earnings, with mothers only able to earn 71 cents for every dollar earned by fathers, resulting in an average annual gap of $16,000. The timing of childbirth also impacts women's earnings, with those experiencing their first pregnancy as adolescents earning less as adults.
This experience, on average,
increases lifetime income by 6%
Family transitions impact household income. For instance, children whose parents divorce and remain divorced for at least six years experience a 40 to 45% decrease in family income when they reach adulthood. Conversely, marriage raises household income by 44 to 56%, but even cohabiting households have higher incomes than single-parent households.
This experience, on average,
increases lifetime income by 19%
A person's social and professional networks greatly affect workplace success. Interacting with others and problem-solving, known as social capital, correlates with greater productivity and increased annual wages. Jobs requiring high social interaction often provide higher wages for those perceived to possess cognitive and social skills.
This experience, on average,
increases lifetime income by 10%
Individuals with family caregiving responsibilities often experience lower economic mobility. Studies reveal that caregivers work fewer hours than their peers, resulting in a loss of earnings ranging from 10 to 16%. Additionally, caregivers tend to allocate more of their earnings to healthcare-related costs, further constraining their economic mobility opportunities.
This experience, on average,
increases lifetime income by 6%
Access to healthcare, including insurance, influences health and economic outcomes. BIPOC individuals and low-wage earners face higher barriers to access, with Black and Hispanic Americans significantly more likely to be uninsured. This lack of insurance leads to increased healthcare costs, as disabled or chronically ill workers earn between 4.7 to 34% less than healthy individuals.
This experience, on average,
increases lifetime income by 13%
Exposure to traumatic childhood experiences, like abuse or witnessing violence, can greatly impact future economic outcomes. For instance, students exposed to school shootings experience a 13.5% decrease in earnings compared to their parents. Also, exposure to police violence can decrease educational attainment, especially among Black and Hispanic students.
This experience, on average,
increases lifetime income by 11%
A healthy birthweight positively increases hourly wages by 10 percent at ages 18-26 and by 22 percent at ages 37-52. Further, poor intrauterine conditions and low birthweights increase the risk of chronic conditions in adulthood, affecting economic productivity and security. However, Black infants are twice as likely to have a low birthweight due to structural factors.
This experience, on average,
increases lifetime income by 10%
Accessing prenatal and postnatal care boosts economic outcomes for both mother and child, with healthier conditions linked to improved education for children. Yet, disparities persist, as Black and American Indian/Alaskan Native women face higher risks of pregnancy-related mortality due to structural factors such as systemic biases in healthcare.
This experience, on average,
increases lifetime income by 6%
Access to adequate nutrition improves childhood health, development, and education outcomes, potentially leading to higher earnings in adulthood. For example, one study found that nutritious school meals boosted academic performance by up to 10%, correlating with a 2 to 4% increase in adult earnings.
This experience, on average,
increases lifetime income by 4%
Economic mobility funding flows
Which Mobility Experiences receive the most funding?
Explore our data dashboard for insight into federal and philanthropic capital for economic mobility in the United States.
Federal funding
$ 6.05 trillion
Flowed to the Mobility Experiences in Fiscal Year 2023.
Philanthropic funding
$ 8.37 billion
Flowed to the Mobility Experiences in 2022.
Perceptions of
Economic Mobility
A majority of Americans believe that most people born into households with low-income earners can secure middle or high incomes in adulthood, yet they are not optimistic about their own economic outlook. We find that more than half of people who earned the lowest incomes in 2010 continued to earn low incomes ten years later. Our findings suggest that the narrative of the “American Dream,” in which everyone has equal access to opportunity and the potential for upward mobility, remains pervasive despite individual lived experiences indicating otherwise.
I was the poor kid, the scholarship kid. My parents struggled to find jobs. I grew up with wealthy kids around me. As an adult, I am in a better economic position. Now, I have a stable job and an apartment in NYC, but I worry it will slip away.
Ana, age 29, New York
Ana, age 29, New York
Structural Factors
Structural factors play a significant role in an individual’s ability to access and navigate Mobility Experiences. These factors result from entrenched historical forces, policies, and trends that have shaped society. They may include limited access to economic resources, lack of access to products and services, presence of socio-cultural bias and discrimination, and other systemic forces such as racism and inequitable power structures. We find that many Americans feel that aspects of their racial, ethnic, and gender identity influence their economic situation, along with their socioeconomic background.
Mobility Experiences:
An introduction
Learn about the Mobility Experiences research series, and keep scrolling through this video carousel to hear from our research participants and their economic mobility stories.
Ivory's Story
Hear Ivory’s journey from navigating foster care to earning a master’s degree to becoming a teacher, all while dealing with student debt, chronic health issues, and job displacement. As she describes herself, this is her story navigating the “American Dream.”
Enrique's Story
Learn how education, job growth, and financial inclusion impacted Enrique’s life. Despite a significant health event and long rehabilitation process, they allowed him to recover and achieve financial stability, including homeownership.
Jesse's Story
Discover how interactions with the criminal justice system significantly impacted Jesse’s life, and how everything changed during his incarceration due to mentorship and a job/skills training program. He now helps other justice-involved individuals find their paths.
Sara's Story
After her motorcycle accident, Sara struggled with medical debt and rehabilitation. Learn how public programs and benefits helped her achieve stability and, along with the support of her community, eventually become a proud business owner.
Differences in
perception by race
Race and ethnicity is a critical lens through which to understand the importance of mobility experiences for individuals, given the structural factors that emerge from racism and historical marginalization of People of Color, barring many from accessing and navigating key mobility experiences
Black Americans are 7%
more likely to report that experiencing physical or emotional trauma has impacted their economic mobility
Hispanic Americans are 8%
less likely to report that access to retirement benefits has impacted their economic mobility
Asian Americans are 10%
less likely to report that receiving consistent care and guidance from a caregiver has impacted their economic mobility
Differences by household income
People value certain life experiences differently depending on their household income. While across the board, graduating from high school is most widely perceived as important to economic mobility, people who live in poverty are far less likely to report that experiences like graduating from college, accessing retirement benefits, and obtaining a well-paying job were influential for their economic mobility, likely because they do not have access to the same opportunities as respondents who earn higher incomes.
15%
of people living in poverty are less likely to report the importance of accessing retirement benefits from an employer on their economic mobility compared to higher income earners.
18%
of people living in poverty are less likely to report the importance of undergraduate college degree on their economic mobility, compared to higher income earners.
14%
of people living in poverty are less likely to report the importance of obtaining a first full-time job with good compensation on their economic mobility, compared to higher income earners.
I lived in a predominantly Hispanic and white neighborhood with some Black families. Looking around, I didn’t see many people becoming successful. And the people that I did see becoming successful were not people of color.”
Derrick, age 33, California
Derrick, age 33, California