iBankCoin
Joined Nov 11, 2007
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State of the Union: “Welcome to $MCD, May I Take Your Order”

“The place in which you live may be killing the American Dream, according to a new study by the National Bureau of Economic Research, suggesting that America may not be the land of opportunity.

Inequality is inhibiting the opportunity for upward mobility in the United States particularly in communities in the South.

On average, a 10 percentile increase in parent income is associated with a 3.4 percentile increase in a child’s income.

However, the probability that a child reaches the top 20 percent of the national income distribution from a family in the bottom 20 percent varies from 4.4 percent in Charlotte, N.C., to 12.9 percent in San Jose, Calif.

The researchers found that the mobility gap cannot be attributed to local tax and spending decisions, local school quality or local area colleges and tuition. Labor markets also didn’t matter.

Instead, the mobility gap is influenced on five pertinent factors:

1. Race. Less upward mobility happens to occur in densely black populations, the researchers note. It is a rich-poor issue rather than a black-white issue, as children of all races from areas with large black populations have less upward mobility.

2. Segregation…..”

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