The fading American dream: Economic mobility has nearly halved since 1940

https://www.eurekalert.org/pub_releases/2017-04/aaft-tfa042417.php

Public Release: 24-Apr-2017
The fading American dream: Economic mobility has nearly halved since 1940
American Association for the Advancement of Science

The probability for children to attain a higher income than their parents has dropped dramatically - from more than 90% for children born in 1940 to 50% for children born in the 1980s - according to a new study analyzing U.S. data. Results reveal that restoring economic mobility would require, in part, more equal economic redistribution. The "American Dream" promises that hard work and opportunity will lead to a better life, and that even those born to low-income families can "rise above the ranks" with sufficient effort.

•••••

They found that the fraction of children earning more than their parents fell from 92% in the 1940 birth cohort to 50% in the 1984 birth cohort. Economic mobility fell most sharply in the industrial Midwest (e.g., Indiana, Illinois), while the smallest declines occurred in states such as Massachusetts, New York, and Montana.

•••••