According to research conducted by Raj Chetty and his team, the place where a child grows up plays a critical role in their financial future and overall well-being.
Chetty and his team found a stark contrast in cities and neighborhoods with high mobility, that is, when children from low-income families experience significant improvements in adult household income.
We wrote this post for parents who want their children to have a better life than them. It highlights what researchers believe is the reason why neighborhoods can profoundly influence children's economic opportunities.
Marriage and Upward Mobility
The role of marriage in economic stability cannot be overstated. Historically, marriage rates have been higher among the affluent, reinforcing income and social stability across generations. In areas where marriage is common, children are more likely to grow up in dual-income households, which provides a buffer against poverty and increases opportunities for investment in areas such as education and health.
It’s important to point out that the researchers are promoting household formation and stability as a policy priority because it is a convenient proxy for household income sharing and there is little evidence that efforts to promote marriage produce desired results.
Here at Modern Husbands, we share ideas that are based on research and useful to all types of relationships. The path to a happy relationship is different for every couple around the world. We provide a diversity of perspectives for a diversity of people and situations.
The institution of marriage is chosen by millions of couples, including myself, to structure a way of life around family. According to the data, marriage has significant benefits for most people, including financial benefits.
Religion and Upward Mobility
In neighborhoods with high mobility, like Salt Lake City, children from low-income families experience significant improvements in adult household income, a stark contrast to cities with lower mobility rates. Nearly half the population of Salt Lake City belongs to the Church of Jesus Christ of Latter-day Saints, which emphasizes community support and stable family structures, contributing heavily to financial security and upward mobility.
I am not telling you that for your kids to be better in their futures, you must convert them to a specific religion and move to Utah.
I'm just sharing the research and highlighting the researcher's hypothesis.
The researcher believes that the emphasis on community support and stable family structures within that faith causes upward mobility for their children.
Related: Get Married: The Evidence Supporting the Institution of Marriage
Community Investment and Upward Mobility
From an economic perspective, policies and community initiatives that promote stable family structures and enhance educational and employment opportunities can significantly alter the trajectory of children from lower-income neighborhoods.
Investing in community development, supporting family stability, and addressing gender-specific disparities is crucial for fostering environments that enhance intergenerational mobility.
Much of what matters most is the safety of the neighborhood and the quality of the schools. I spent 15 years as a public school teacher and am a strong believer in a great education. Unfortunately, not all children in the United States have access to great schools, but as a parent, you do have some control over where you choose to live.
I wrote extensively in a past post about the criteria I suggest parents use to select the schools best for their children: Where Should We Live? – 15 Factors with Resources to Help Newlyweds Decide Where to Live.
Wrapping it Up
It takes a village to raise a child. Children are more likely to have a financially secure future when they grow up in a safe community, a stable family environment, and with access to high-quality education.
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