Where You Grow Up Has a Big Effect on How Much You Earn As An Adult

A new study shows the lasting financial effects of childhood.

Turns out where you live as a child has a lot to do with how much you'll earn as an adult.<a href="http://www.nytimes.com/interactive/2015/05/03/upshot/the-best-and-worst-places-to-grow-up-how-your-area-compares.html?_r=0&abt=0002&abg=0">Map courtesy of the New York Times</a>

Facts matter: Sign up for the free Mother Jones Daily newsletter. Support our nonprofit reporting. Subscribe to our print magazine.


It’s pretty obvious that where you live as an adult has a major impact on your financial situation. It’s way more expensive to live in San Francisco, for example, than in Iowa. But a recent study suggests that where you grow up has a significant impact on your chances of financial success later in life.

The Equality of Opportunity Project, run by Harvard economists Raj Chetty and Nathaniel Hendren, looked at tax records on 5 million families who moved between counties from 1996 to 2012. Analyzing those records, the researchers were able to measure the relative annual income differentials before and after moving. The researchers found several local factors seem to impact a child’s future earning capabilities: race and income segregation, exacerbated income inequality, quality of schools, crime, and the prevalence of two-parent households.

The full list of counties shows that DuPage County, Illinois, just west of Chicago, could be the best of the country’s top 100 counties in terms of children’s upward mobility. Simply by living there, a child could add about $200 to his or her annual income at age 26, a 15 percent premium over the county average nationwide. The worst county for future mobility, Baltimore City, puts children in a position to make more than 17 percent less than the county average.

To see how your county fares, check out the New York Times‘ interactive presentation of the study’s findings.

Chetty and Hendren write that their study “suggests that policy makers seeking to improve mobility should focus on improving childhood environments (e.g., by improving local schools) and not just on the strength of the local labor market availability of jobs.” In other words, trying to provide more economic opportunity for adults starts with leveling the playing field for kids, regardless of where they grow up.

REAL QUICK, REAL URGENT

Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

payment methods

REAL QUICK, REAL URGENT

Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate