Why it's harder to earn more than your parents

The Economist
25 Nov 202125:18
EducationalLearning
32 Likes 10 Comments

TLDRThe video script explores the diminishing social mobility in the 21st century, particularly in rich countries where one's birth class significantly influences their future prospects. Despite America's reputation as a 'land of opportunity', it has some of the lowest income mobility rates among developed nations. The script highlights the impact of wealth inequality, education's role as a determinant of social status, and the importance of early childhood interventions. It also discusses efforts to improve social mobility through innovative schooling in Britain and the influence of where one grows up on their future earnings, suggesting that policy changes and societal shifts are crucial for fostering equal opportunities.

Takeaways
  • πŸ”„ Social mobility is becoming more difficult in the 21st century, with one's class at birth still significantly impacting their chances of advancement.
  • 🌐 Hidden privileges and wealth disparities contribute to the reduced social mobility, even in developed countries like the USA, often considered the 'land of opportunity'.
  • πŸ“‰ The lack of social mobility can lead to political disaffection and radicalism, as people feel they have no chance to improve their circumstances.
  • πŸ‘§ Sophie Pender's story illustrates an individual overcoming the odds, rising from a challenging background to work in a top law firm and advocate for social mobility.
  • πŸ‡ΊπŸ‡Έ The USA has one of the lowest rates of income ladder climbing among rich nations, with a mere 9% chance of moving from the bottom to the top of the income ladder.
  • πŸ’Ό The growing income inequality in America, where the top 1%'s share of taxable income has more than doubled since 1975, contributes to the difficulty of social mobility.
  • πŸŽ“ Education has become a significant determinant of income and life chances, with university attendance being a crucial divide between the classes.
  • 🏫 Innovative state schools in Britain are helping students from lower-income families gain admission to top universities, challenging the traditional class divide in education.
  • 🀝 The importance of social capital, such as networks and connections, in addition to educational and economic opportunities, is highlighted as a factor in social mobility.
  • 🌟 The '93% Club' is an example of an initiative aimed at providing state school students with the unseen privileges and opportunities that private school students often have access to.
  • 🌱 Post-pandemic, there is a unique opportunity for governments to commit to policies that improve education access and wealth redistribution to enhance social mobility.
Q & A
  • What is the general perception of social mobility in the 21st century?

    -The general perception might be that climbing the social ladder has become easier in the 21st century; however, the script suggests that it is actually getting harder, with the class one is born into still significantly impacting one's chances of success.

  • Why does the lack of social mobility lead to political rifts?

    -The lack of social mobility leads to political rifts because when people feel they do not have a chance to improve their circumstances, it results in disaffection and can drive them towards radicalism in politics.

  • What is Sophie Pender's background and how did she defy expectations?

    -Sophie Pender grew up on a council estate with an alcoholic and drug-addicted father. It was hard for people to expect much from her, but she defied expectations by working for a top law firm and becoming passionate about helping working-class people get ahead.

  • What is the probability of moving from the bottom to the top of the income ladder in Britain and America?

    -In Britain, there is a 9% probability of moving from the bottom to the top of the income ladder, which is even lower in America, suggesting that social mobility is more challenging in the United States.

  • How does the level of wealth and income inequality affect social mobility?

    -The level of wealth and income inequality affects social mobility because when there is a lot of inequality, the rungs on the ladder of opportunity are further apart, making it harder for individuals to climb the social ladder.

  • What was the social mobility situation like in America after World War II?

    -After World War II, America enjoyed a social-mobility boom with an expansion in professional and managerial jobs, allowing many working-class people to move up the income ladder. Those born in the post-war years in America had a 90% chance of making more money than their parents.

  • How has the importance of education changed over time in relation to social mobility?

    -Education has become the new determinant of people's incomes and life chances, much more so than 50 or 60 years ago. It has now become a significant factor in determining one's social mobility prospects.

  • What is the role of the NCS school in Newham, London, in boosting social mobility?

    -The NCS school in Newham, one of London's poorest boroughs, has been successful in catapulting kids from lower-income families into top universities, with 95% of its students going on to top universities in Britain.

  • How does the script suggest addressing the social divide and improving access to higher education?

    -The script suggests that creating state schools like the NCS that focus on academic excellence and provide opportunities for lower-income families can help bridge the social divide and improve access to higher education.

  • What is the impact of the Jamaica programme on the children who participated in it?

    -The Jamaica programme, which provided homemade toys and books to help develop language and cognitive skills in children, had a significant long-term impact. 20 years after the experiment, the children were earning 25% more than the control group, and at the 30-year follow-up, they earned 43% more per hour.

  • How does the script suggest improving social mobility for younger children?

    -The script suggests that early interventions, such as the Jamaica programme, which provided educational toys and books to young children, can significantly improve their life chances and earnings as adults.

  • What role does social capital play in social mobility?

    -Social capital, which refers to the invisible networks that help perpetuate the advantages those from wealthy backgrounds enjoy, plays a significant role in social mobility. It includes the connections and subtle favours that can be called upon to assist in career and life advancements.

  • What is the 93% Club and how does it aim to address social mobility?

    -The 93% Club is a group founded by Sophie, dedicated to changing the social mobility landscape by packaging up privilege and giving it back to students from lower socioeconomic backgrounds. It provides opportunities such as professional mentorship and training to help level the playing field.

  • How does the script suggest governments can improve social mobility?

    -The script suggests that governments need to commit to improving both access to education and wealth redistribution to enhance social mobility. It also highlights the post-pandemic world as a unique opportunity for change in this area.

Outlines
00:00
πŸ”„ Social Mobility Challenges in the 21st Century

The script discusses the illusion of increased social mobility in the 21st century and the reality that one's class at birth heavily influences their future prospects. It highlights the lack of discussion around hidden privileges and the stark contrast to the American dream, where social mobility is surprisingly low compared to other rich nations. The script introduces Sophie Pender's story, who defied expectations growing up in a challenging environment to work for a top law firm, emphasizing the rarity of such success stories and the systemic issues contributing to social immobility.

05:02
πŸŽ“ The Role of Education in Social Divide

This paragraph delves into the significance of education as a determinant of social mobility, especially in service-based economies where opportunities for those without a degree are limited. It showcases the success of a British state school in Newham, which has managed to send 95% of its students to top universities, despite their disadvantaged backgrounds. The narrative also touches on the decline of private schools' dominance in elite university admissions and the negative impact of legacy admissions in the U.S., which perpetuates class divisions.

10:02
πŸ“š Efforts to Equalize University Admissions

The script describes the perpetuation of a cycle where wealthier parents are more likely to see their children graduate, particularly in America, where educational credentials are highly valued. It details the story of Kawika Smith, who fought against the use of SATs in college admissions due to their bias towards wealthier students. The University of California's decision to drop SAT scores from its admissions process is highlighted as a potential catalyst for change, though it came too late for Kawika.

15:02
🧩 Early Childhood Intervention and Its Impact

The script tells the story of a pioneering scheme in Jamaica that aimed to help the poorest children develop language and cognitive skills through homemade toys and books. The program, led by physician Sally Grantham-McGregor, focused on engaging mothers and providing cost-effective tools for learning. Long-term follow-ups showed that the children involved in the program earned significantly more as adults, suggesting the effectiveness of early childhood interventions in improving social mobility.

20:05
🌐 Geographic Disparities in Social Mobility

This section explores the impact of geography on social mobility, using the 'opportunity atlas' to illustrate how the location of one's upbringing can significantly affect future earnings. It contrasts the high mobility rates found in the Great Plains and Upper Midwest with the lower rates in other areas. The script also discusses the role of social capital and the importance of networks in perpetuating advantages for the wealthy, highlighting Sophie's experience and her initiative, the 93% Club, which aims to redistribute privilege to students from lower socioeconomic backgrounds.

25:05
🌟 The Promise and Limitations of Social Mobility Solutions

The script concludes by acknowledging the complexity of improving social mobility. It suggests that while individual efforts like the 93% Club are commendable, a systemic approach involving government commitment to education and wealth redistribution is necessary. The post-pandemic world is presented as an opportunity for change, with social mobility and income inequality becoming central to policy discussions. The script ends with a call to action, inviting viewers to engage further with the topic through provided resources.

30:33
πŸ”„ The Illusion of Social Mobility in the Modern Era

The final paragraph reiterates the central theme of the script, emphasizing the false perception that social mobility has become easier in the modern era. It contrasts this belief with the reality that one's social class at birth continues to significantly impact their life chances. The script calls attention to the underlying privileges that contribute to this disparity and suggests that addressing these issues is crucial to fostering true social mobility.

Mindmap
Keywords
πŸ’‘Social Mobility
Social mobility refers to the ability of individuals to move between different social classes throughout their lifetime, often influenced by factors such as wealth, education, and occupation. In the video, it is highlighted as a significant issue in the 21st century, with the class one is born into still having a strong impact on their life chances. The script mentions that social mobility is harder in many rich countries, including America, which is often seen as the 'land of opportunity' but has some of the lowest chances of climbing the income ladder.
πŸ’‘Hidden Privileges
Hidden privileges are unspoken and often unconscious advantages that certain individuals or groups possess due to their social class, race, or other factors. The script points out that these privileges are not widely discussed but play a significant role in maintaining social class structures. For instance, the video suggests that even in America, there are underlying hidden privileges that prevent equal opportunities for social advancement.
πŸ’‘Income Inequality
Income inequality refers to the uneven distribution of income among a population, which can lead to significant gaps between the rich and the poor. The video script discusses how income inequality, particularly in America, has been increasing, with the top 1% of earners taking a larger share of taxable income over time. This widening gap makes it more difficult for individuals from lower-income backgrounds to move up the social ladder.
πŸ’‘Populist Movements
Populist movements are political forces that seek to appeal to ordinary people who feel that their concerns are disregarded by established elite groups. The script mentions that declining social mobility and the perception of limited opportunities can lead to disaffection and fuel populist movements on both the left and the right, not just in America but across the world.
πŸ’‘Education as a Determinant
In the context of the video, education is portrayed as a crucial determinant of people's incomes and life chances, much more so than in the past. The script notes a shift from manufacturing to service-based industries in rich countries, which has resulted in fewer opportunities for those without a degree. Education has become a key factor in accessing higher-paying jobs and improving one's social and economic status.
πŸ’‘State Schools
State schools, as discussed in the script, are government-funded educational institutions that aim to provide education to children from a wide range of socioeconomic backgrounds. The video highlights a new breed of state schools in Britain that have been successful in propelling students from lower-income families into top universities, thus helping to bridge the social divide.
πŸ’‘Legacy Admissions
Legacy admissions are a controversial practice in some universities, particularly in the United States, where children of alumni are given preferential treatment during the admissions process. The script criticizes this practice for perpetuating a cycle of privilege and making it harder for low-income students to gain entry to elite institutions.
πŸ’‘Credentialism
Credentialism is the emphasis on academic qualifications as a measure of a person's worth or ability. The video script describes how in America, having prestigious educational credentials has become a mark of upper-class status, creating barriers for those without such qualifications to advance socially.
πŸ’‘Opportunity Atlas
The 'opportunity atlas' mentioned in the script is a heat map created by economists using Census Bureau data to track the economic outcomes of children based on where they grew up. It reveals that certain areas provide significantly better opportunities for social mobility, regardless of a family's initial income level.
πŸ’‘Social Capital
Social capital refers to the networks and connections that individuals can leverage for social and economic benefits. In the video, it is explained as the invisible networks that perpetuate the advantages of those from wealthy backgrounds, such as knowing someone in a particular industry or receiving subtle favors like help with a CV. The script illustrates how the lack of such social capital can hinder social mobility.
πŸ’‘Wealth Redistribution
Wealth redistribution is the process of transferring wealth from the richer segments of the population to the poorer ones, often through mechanisms like taxation and social welfare programs. The script suggests that improving social mobility requires not just better access to education but also a commitment to wealth redistribution by governments.
Highlights

Social mobility is becoming harder in the 21st century, with one's class at birth still significantly impacting opportunities.

Hidden privileges contribute to a lack of social mobility, even in the 'land of opportunity', America.

Data suggests America has some of the lowest income ladder climbing chances among rich countries.

Lack of social mobility can lead to political disaffection and radicalism.

Sophie Pender's story illustrates a working-class individual defying expectations to work for a top law firm.

Britain has a social-mobility problem with low probabilities of moving from the bottom to the top of the income ladder.

Inequality in wealth and welfare provision affects relative social mobility across different countries.

America exemplifies rising income and wealth inequality, making the social ladder harder to climb.

The share of taxable income going to the top 1% in America has more than doubled from 1975 to 2018.

Declining social mobility fuels populist movements and is a concern for American society.

Post-WWII America saw a social-mobility boom with many working-class people moving up the income ladder.

Absolute mobility has been falling since the 1940s, with each younger American generation facing worse chances.

Education has become a significant determinant of income and life chances, especially in service-based economies.

Innovative state schools in Britain are helping lower-income children gain access to top universities.

Private schools' influence on elite universities is diminishing, with a drop in admissions from these institutions.

Legacy admissions in the U.S. perpetuate educational inequality and create a national ruling class.

The University of California dropped SAT scores from its admissions process following a legal battle.

Focusing on disparities in high school graduation rates may be more impactful than elite university compositions.

A Jamaican program that provided toys and books to impoverished children boosted their long-term earnings.

China, despite high absolute mobility, still exhibits low relative mobility and income inequality.

The U.S. 'opportunity atlas' shows that growing up in certain areas significantly impacts adult earnings.

Social capital, the networks that perpetuate advantages, plays a significant role in social mobility.

The 93% Club in Britain aims to package and redistribute privilege to students from lower socioeconomic backgrounds.

Government commitment to education access and wealth redistribution is key to improving social mobility.

The post-pandemic world presents a unique opportunity to address social mobility and income inequality.

Transcripts
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