“Where You Grow Up Matters”

http://billmoyers.com/2013/07/23/where-you-grow-up-matters/

A new study shows that your potential for climbing the income ladder in the United States is largely dependent on your hometown. “Where you grow up matters,” Harvard economist and study author Nathaniel Hendren told The New York Times. “There is tremendous variation across the U.S. in the extent to which kids can rise out of poverty.”

This geography appears to play a major role in making Atlanta one of the metropolitan areas where it is most difficult for lower-income households to rise into the middle class and beyond, according to a new study that other researchers are calling the most detailed portrait yet of income mobility in the United States.
Map from The New York Times website lets you roll over states and see the income mobility rates change. Click on the map to interact with it at The New York Times website

Geography matters much less for the children of well-off parents — who tend to do well across the board — but for those at the bottom of the ladder, growing up in poor neighborhoods in Atlanta or Chicago often means that the chances of achieving higher incomes later in life are significantly lessened.

David Leonhardt reports:

The study — based on millions of anonymous earnings records and being released this week by a team of top academic economists — is the first with enough data to compare upward mobility across metropolitan areas. These comparisons provide some of the most powerful evidence so far about the factors that seem to drive people’s chances of rising beyond the station of their birth, including education, family structure and the economic layout of metropolitan areas.

Climbing the income ladder occurs less often in the Southeast and industrial Midwest, the data shows, with the odds notably low in Atlanta, Charlotte, Memphis, Raleigh, Indianapolis, Cincinnati and Columbus. By contrast, some of the highest rates occur in the Northeast, Great Plains and West, including in New York, Boston, Salt Lake City, Pittsburgh, Seattle and large swaths of California and Minnesota.

In Climbing Income Ladder, Location Matters

http://www.nytimes.com/2013/07/22/business/in-climbing-income-ladder-location-matters.html?src=me&ref=general&_r=0

ATLANTA – Stacey Calvin spends almost as much time commuting to her job — on a bus, two trains and another bus — as she does working part-time at a day care center. She knows exactly where to board the train and which stairwells to use at the stations so that she has the best chance of getting to work on time in the morning and making it home to greet her three children after school.

“It’s a science you just have to perfect over time,” said Ms. Calvin, 37.

Her nearly four-hour round-trip stems largely from the economic geography of Atlanta, which is one of America’s most affluent metropolitan areas yet also one of the most physically divided by income. The low-income neighborhoods here often stretch for miles, with rows of houses and low-slung apartments, interrupted by the occasional strip mall, and lacking much in the way of good-paying jobs.

This geography appears to play a major role in making Atlanta one of the metropolitan areas where it is most difficult for lower-income households to rise into the middle class and beyond, according to a new study that other researchers are calling the most detailed portrait yet of income mobility in the United States.