About 7.5% of American children born into the bottom quintile of the income distribution will eventually make it into the top one fifth. In the UK this number is about 9%. And in Canada and Denmark, the numbers are 13% and 13.5%, respectively. (The upper bound for these numbers is 20% since you can’t have more than 20% in the top 20% of the income distribution.)
Because of stats such as these, Freakeconomics recently asked: Is the American Dream really dead? And if so, should it instead be called the Canadian Dream, seeing how it’s more readily obtained.
Of course, it’s not necessarily as simple as 7.5% vs. 13%. Upward mobility exhibits a lot of regional variation. In the American southeast, the number is closer to 4%. Whereas in the San Francisco Bay Area, the number is up there with Canada and Denmark. However, this phenomenon is so location-specific that even kids growing up in San Francisco are twice as likely to get to the top 20% compared to kids growing up across the bridge in Oakland.
There’s also a question of spread. Canada and Denmark have less income inequality, meaning you don’t have to travel as far to get to the top of the income distribution.
Still, the reality is that it is becoming harder for Americans to climb the socioeconomic ladder. The number of 30-year old Americans who today earn more than their parents is dropping compared to previous decades. So what needs to be done? What is causing this erosion of the American Dream?
About 7.5% of American children born into the bottom quintile of the income distribution will eventually make it into the top one fifth. In the UK this number is about 9%. And in Canada and Denmark, the numbers are 13% and 13.5%, respectively. (The upper bound for these numbers is 20% since you can’t have more than 20% in the top 20% of the income distribution.)
Because of stats such as these, Freakeconomics recently asked: Is the American Dream really dead? And if so, should it instead be called the Canadian Dream, seeing how it’s more readily obtained.
Of course, it’s not necessarily as simple as 7.5% vs. 13%. Upward mobility exhibits a lot of regional variation. In the American southeast, the number is closer to 4%. Whereas in the San Francisco Bay Area, the number is up there with Canada and Denmark. However, this phenomenon is so location-specific that even kids growing up in San Francisco are twice as likely to get to the top 20% compared to kids growing up across the bridge in Oakland.
There’s also a question of spread. Canada and Denmark have less income inequality, meaning you don’t have to travel as far to get to the top of the income distribution.
Still, the reality is that it is becoming harder for Americans to climb the socioeconomic ladder. The number of 30-year old Americans who today earn more than their parents is dropping compared to previous decades. So what needs to be done? What is causing this erosion of the American Dream?
It turns out that city builders have an important role to play in solving this problem. Because where you live – and in particular where you grow up as a kid – matters.
The Freakeconomics episode examines a study that was done by Raj Chetty, Nathaniel Hendren, and Lawrence Katz, called: The Effects of Exposure to Better Neighborhoods on Children. And their findings were exactly that. Place matters. The study reexamines the findings of a program that was administered in the mid 1990′s in the US called Moving to Opportunity (MTO). This program randomly offered families living in high-poverty neighborhoods the opportunity to move to neighborhoods with far less poverty.
Upon initial review, the program was seen as a failure. There were some positive health outcomes, but no meaningful changes in income. But when Chetty and company took another look at the data – now with more time and IRS data on their side – they discovered that the impact was in fact dramatic. Relocated families raised children that earned 30% more, were 27% more likely to go to college, and 30% less likely to be a single parent. The key, however, was that the children had to relocate when they were young (< 13 year olds). The older they got, the less benefit they received from moving, eventually reaching a plateau where there was basically no benefit at all.
Here are the 5 things that ended up having significance in their findings:
Residential segregation by income and race is bad. Mixed neighborhoods are good. The southeast is filled with segregated cities and that’s one of the reasons why they underperform in this exercise. San Francisco, on the other hand, was far more mixed in the 80′s and 90′s when the kids belonging to this study were growing up. One could debate whether that’s still the case. I guess we’ll find out in a few decades.
Single parent households seem to have an impact on upward mobility. However, the data suggests that it’s not just about whether the child in question grew up with married parents. The percentage of single parent households in the neighborhood also matters. Because even children in dual parent households in a neighborhood with lots of single parent households, showed muted upward mobility.
Social fabric. Connections to family and friends matter. It’s about having a support network. (Freakeconomics mentions a book called Bowling Alone that is now on my reading list.)
Not surprisingly, the quality of public schools matters.
All of the stats for this post were taken from this Freakeconomics Radio episode. For me, it is such an important reminder that the way we plan and build our cities can have meaningful and longstanding impacts on the kinds of children we raise.
“As the manufacture of storefront signage becomes increasingly standardized,” says a circular from Berlin’s Buchstabenmuseum, “the tradition of idiosyncratic signs created by skilled craftspeople, reflecting regional differences and a firm’s unique character, is dying out.”
The above quote is from this Globe and Mail article talking about the lost art of sign making and about an exhibition that starts today (until January 27) in Montreal at the Media Gallery of Concordia University’s Communication Studies and Journalism Building. It is called Tel Quel / As Is and it is by the Montreal Signs Project.
Cities all around the world are facing a decline in distinctive local signage, which is not all that different than the decline in regional architecture. We are living in a global village.
It can be challenging to repurpose old signs. There are often issues of appropriateness and scale. Sometimes a new or renovated building looks good with its old signage. But in other cases – and perhaps more often than not – it wouldn’t. So then what do you do with it?
Still, it behooves us to try. Signs, like buildings, are a snapshot of a moment in time. They are part of the environment that we create for ourselves. They are part of our history.
It turns out that city builders have an important role to play in solving this problem. Because where you live – and in particular where you grow up as a kid – matters.
The Freakeconomics episode examines a study that was done by Raj Chetty, Nathaniel Hendren, and Lawrence Katz, called: The Effects of Exposure to Better Neighborhoods on Children. And their findings were exactly that. Place matters. The study reexamines the findings of a program that was administered in the mid 1990′s in the US called Moving to Opportunity (MTO). This program randomly offered families living in high-poverty neighborhoods the opportunity to move to neighborhoods with far less poverty.
Upon initial review, the program was seen as a failure. There were some positive health outcomes, but no meaningful changes in income. But when Chetty and company took another look at the data – now with more time and IRS data on their side – they discovered that the impact was in fact dramatic. Relocated families raised children that earned 30% more, were 27% more likely to go to college, and 30% less likely to be a single parent. The key, however, was that the children had to relocate when they were young (< 13 year olds). The older they got, the less benefit they received from moving, eventually reaching a plateau where there was basically no benefit at all.
Here are the 5 things that ended up having significance in their findings:
Residential segregation by income and race is bad. Mixed neighborhoods are good. The southeast is filled with segregated cities and that’s one of the reasons why they underperform in this exercise. San Francisco, on the other hand, was far more mixed in the 80′s and 90′s when the kids belonging to this study were growing up. One could debate whether that’s still the case. I guess we’ll find out in a few decades.
Single parent households seem to have an impact on upward mobility. However, the data suggests that it’s not just about whether the child in question grew up with married parents. The percentage of single parent households in the neighborhood also matters. Because even children in dual parent households in a neighborhood with lots of single parent households, showed muted upward mobility.
Social fabric. Connections to family and friends matter. It’s about having a support network. (Freakeconomics mentions a book called Bowling Alone that is now on my reading list.)
Not surprisingly, the quality of public schools matters.
All of the stats for this post were taken from this Freakeconomics Radio episode. For me, it is such an important reminder that the way we plan and build our cities can have meaningful and longstanding impacts on the kinds of children we raise.
“As the manufacture of storefront signage becomes increasingly standardized,” says a circular from Berlin’s Buchstabenmuseum, “the tradition of idiosyncratic signs created by skilled craftspeople, reflecting regional differences and a firm’s unique character, is dying out.”
The above quote is from this Globe and Mail article talking about the lost art of sign making and about an exhibition that starts today (until January 27) in Montreal at the Media Gallery of Concordia University’s Communication Studies and Journalism Building. It is called Tel Quel / As Is and it is by the Montreal Signs Project.
Cities all around the world are facing a decline in distinctive local signage, which is not all that different than the decline in regional architecture. We are living in a global village.
It can be challenging to repurpose old signs. There are often issues of appropriateness and scale. Sometimes a new or renovated building looks good with its old signage. But in other cases – and perhaps more often than not – it wouldn’t. So then what do you do with it?
Still, it behooves us to try. Signs, like buildings, are a snapshot of a moment in time. They are part of the environment that we create for ourselves. They are part of our history.
It is a bicycle light – by a London-based company called Blaze – that forward projects a bicycle symbol 6m in front of you as you ride. It also has a really bright white light.
They will be (or have been) installed on London’s entire bike-share fleet and they are currently being piloted in New York City. Here is a video of it in action.
One of the things I always watch for when I’m cycling is being in a car’s blindspot. Signalling seems to be a dying art, so you never know when someone might turn into you. If this light is able to project in front of the car and signal to the driver that a cyclist is nearby, then I could see this being a big safety improvement. Of course, this is just one scenario where a light like this might be helpful.
It is a bicycle light – by a London-based company called Blaze – that forward projects a bicycle symbol 6m in front of you as you ride. It also has a really bright white light.
They will be (or have been) installed on London’s entire bike-share fleet and they are currently being piloted in New York City. Here is a video of it in action.
One of the things I always watch for when I’m cycling is being in a car’s blindspot. Signalling seems to be a dying art, so you never know when someone might turn into you. If this light is able to project in front of the car and signal to the driver that a cyclist is nearby, then I could see this being a big safety improvement. Of course, this is just one scenario where a light like this might be helpful.
