Income is a direct measure of prosperity. Thus, having opportunities to earn higher income improves people’s prospects for economic success. Higher incomes are also associated with higher academic achievement and educational attainment, better physical and mental health, and fewer behavioral problems in children.
Evidence on the Relationship between Opportunities for Income and Upward Mobility Outcomes
As of December 2021, researchers have documented the following connections between this predictor and upward mobility. Asterisk (*) indicates primary reference.
- Income is a direct measure of mobility as a result of economic success. At particular stages of life, it is also predictive of later-life outcomes across multiple mobility principles (Duncan, Magnuson, and Votruba-Drzal 2017*).
- Parents’ income affects children’s academic achievement. Income gains have consistently been shown to improve elementary school students’ achievement, but evidence of achievement changes for adolescents is mixed. Family income has been shown to affect high school graduation, completed years of schooling, and educational attainment, but not test scores.
- Income affects the behavioral and mental health outcomes of children and young people. Compared with children from higher-income families, children from low-income families are generally rated as having more behavioral problems, and adolescents from low-income families have higher rates of nonmarital fertility and criminal activity. Studies have demonstrated that low income is associated with detrimental psychological functioning, such as antisocial behavior, inadequate self-regulation, and poor mental health.
- Duncan, Magnuson, and Votruba-Drzal (2017)* review the evidence on the effect of parents’ income status on later-life outcomes for children and adolescents and suggest a strong relationship between income and future economic success, educational attainment, and health outcomes.
Promising Local Policy Interventions
Research from both Urban and others in the field suggests the following policies could help communities improve this predictor. These suggestions are not exhaustive, and communities should work with residents and leaders to identify solutions that are best suited to their local contexts.
- Supporting residents in accessing and completing postsecondary education. (This may also improve the Preparation for College predictor.)
- Helping parents access high-quality and affordable child care. (This may also improve the Access to Preschool predictor.)
- Creating workforce development programs that support workers in reskilling and upskilling, such as public-sector apprenticeships. (This may also improve the Employment Opportunities and High-Quality Education predictors.)
- Providing direct cash transfers to residents, such as through guaranteed income programs or local tax credits. (This may also improve the Financial Security predictor.)
- Supporting existing employers, particularly locally owned businesses, to grow and thrive. (This may also improve the Employment Opportunities predictor.)
- Investing in job placement services and supports to help residents find stable jobs, including transitional and reentry support programs. (This may also improve the Safety from Crime predictor.)
Mobility Dimensions Engaged
- Economic success
