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Marketplace All-in-One

It’s not just what you know, it’s who you know — for kids, too

Marketplace All-in-One

Marketplace

News, Business

4.51.4K Ratings

🗓️ 26 July 2024

⏱️ 7 minutes

🧾️ Download transcript

Summary

A new study from researchers at Harvard’s Opportunity Insights and the Census Bureau finds that children have a better chance at moving up the economic ladder if most of the adults they interact with are employed — not just in the household but beyond. We’ll delve in. Plus, the Biden White House still has lots on its economic plate before a new president comes to power in six months.

Transcript

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0:00.0

Economic mobility is not just about schools and family, it's about community connections.

0:07.0

I'm David Brancaccio. Who you know matters a lot and that's true for kids as well a new study from

0:13.8

researchers at Harvard's Opportunity Insights and the US Census Bureau finds that

0:18.5

children have a better chance at moving up the economic ladder if most of the adults with whom they interact are

0:24.4

employed not just in the household but beyond. Marketplace's Samantha Fields reports.

0:30.1

We've long known that where you grow up has a huge influence on your life, economically and otherwise.

0:35.0

Turns out who you're around does too.

0:38.0

If you're growing up in a community where parents of your own race and class group are working at lower rates,

0:45.0

that seems to have an adverse impact on your outcomes in adulthood.

0:49.0

Benny Goldman is an assistant professor at Cornell who worked on the study and he says on the flip side

0:54.4

children who move young to areas where folks in their own social community tend to be working at

1:00.5

high rates tend to do better as adults.

1:03.6

If most of your friends and classmates parents are employed,

1:06.2

that makes a big difference.

1:08.1

It kind of goes against our sense of individual autonomy.

1:11.3

Like if I work hard and do the right things, I'm going to do well.

1:14.7

Stephen Brown is with the Aspen Institute's Financial Security Program.

1:18.0

It's not just all about you and your family.

1:20.6

It's about neighborhoods, it's about networks. And it's about class.

1:24.0

Raj Chetti, a professor at Harvard and one of the researchers, says that race is less important than it once was to kids' prospects for upward mobility.

1:32.0

But... While race is becoming less important... to kids prospects for upward mobility, but...

1:32.6

While race is becoming less important,

...

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