May 1, 2006 – A report from the Center for American Progress shows that children from low and middle-income families have little economic mobility in the United States. Key findings in the report include:
Children from low-income families have a 1 percent chance of reaching the top 5 percent of the income distribution, versus children of the rich who have about a 22 percent chance.
Children born to middle income families had about the same chance of ending up in a lower quintile than their parents (39.5 percent) as they did of moving to a higher quintile (36.5 percent). Their chances of attaining the top five percentiles of the income distribution were just 1.8 percent.
Education, race, health and state of residence are four key channels by which economic status is transmitted from parent to child.
Read the entire report.