What is Economic Mobility? Building Stronger Families and Communities
Key Insights and Takeaways
Economic mobility is a combination of economic success, power and autonomy, and being valued within the community.
Economic mobility in the U.S. is at a historic low. Only half of today’s children are expected to earn more than their parents—a stark drop from previous generations.
Communities must not only support upward mobility, but also guard against downward mobility. Without action, individuals and families can lose ground over time.
What is Economic Mobility?
Economic mobility is a combination of economic success, power and autonomy, and being valued within the community, as defined by the U.S. Partnership on Mobility from Poverty. Economic mobility is measured by how economic status or outcomes can change over time. It is a foundational component of the American Dream, which states that through hard work and effort, you or your children can do better in life.
Unfortunately, economic mobility remains a dream for many Americans, due to generations of inequality that have left certain groups locked out of opportunity, despite their hard work and effort. According to the US Partnership on Mobility from Poverty, “Only 20 percent of white men are working in low-wage jobs, versus almost 40 percent of black women and 46 percent of Hispanic women and more than 60 percent of Hispanic women noncitizens.” Moreover, economic mobility overall has declined, with only 50% of children growing up to earn more than their parents.
Across the United States, economic mobility has become a key focus in conversations about opportunity, prosperity, and justice for all. As the United States faces some of the highest rates of economic inequality since the Great Depression and economic mobility decreases, many individuals and institutions are doubling down on improving economic mobility. Understanding economic mobility is essential, not only as a measure of individual success, but also as a powerful catalyst for community well-being and national prosperity.
Advancing economic mobility requires equitable economic advancement opportunities that are not limited by income, race, gender, or geography. As the Gates Foundation Economic Mobility and Opportunity Director Ryan Rippel shares, “Equitable access to opportunities that lead to economic security…will not be possible until we address systemic racism, sexism, and stereotypes.” This inclusive approach allows for more communities to access upward economic mobility.
Upward vs. Downward Mobility
One’s economic condition is rarely stagnant. Economic mobility can improve (upward mobility) or stay the same/decrease (downward mobility) over time.
Upward economic mobility is not just about earning more money. As explained in the New Growth Innovation Network’s (NGIN) Economic Mobility: The Gift That Keeps on Giving blog post, we explain how upward economic mobility comes from a combination of economic success, power and autonomy, and being valued in your community.
What are the components of Upward Economic Mobility?
Economic success means that people have sufficient income and assets to support their own and their family's material well-being.
Power and autonomy reflect individuals' ability to control their lives, make meaningful choices, and influence the policies and systems that shape their futures.
Dignity and belonging ensure that people feel respected, valued, and recognized for their contributions to their families, workplaces, and communities.
When we view upward mobility through this lens, it becomes clear why employment alone is often insufficient to propel individuals forward. True upward mobility requires more than just access to tangible resources like income, assets, training, and jobs. It also demands access to intangible assets such as social capital, agency, and a deep sense of belonging within one's community.
Alternatively, downward economic mobility describes when someone’s economic mobility worsens or remains stagnant. For adults and their families, downward economic mobility presents challenges in meeting basic needs, including housing, healthcare, and food. As for children, downward economic mobility and the experience of living in poverty can lead to mental and physical health challenges throughout their lives.
The impacts of downward mobility are even more pronounced in Black, Indigenous, and other historically marginalized communities, where racist historical practices, such as housing discrimination, redlining, and the dispossession of Native American lands, stripped these communities not only of wealth but also of power, agency, and belonging.
Without power and autonomy, communities were systematically excluded from decision-making processes that shaped their futures. Without dignity and belonging, their contributions were devalued, leading to isolation from social, civic, and economic systems. These losses compounded the material hardships they faced, creating conditions of concentrated poverty, limited access to stable employment, and barriers to generational wealth-building.
Thus, downward mobility in historically disinvested communities is not merely the result of individual circumstances, but the outcome of long-standing systemic denial of all three pillars of economic mobility: economic success, power and autonomy, and dignity and belonging. Breaking this cycle requires restoring access to each of these pillars, not just improving economic outcomes alone.
Advancing upward economic mobility unlocks the opportunity to break generational cycles of poverty and improve outcomes in education, health, and other areas critical to well-being. As highlighted in the Urban Institute’s Boosting Upward Mobility webinar, the benefits of upward mobility extend even further. Economic success—where children and families are well-supported—helps build strong, resilient family units. A sense of dignity and belonging, where individuals feel valued by their communities, strengthens the fabric of neighborhoods and fosters deeper social connections. And when people have greater power and autonomy over their lives, they gain the freedom to pursue new opportunities to learn, grow, and thrive.
Strategies for Upward Economic Mobility
To learn about strategies leading to upward economic mobility, explore the Results for America Economic Mobility Catalog. Funded by the Gates Foundation, the catalog is a comprehensive resource to help local leaders identify and implement evidence-based strategies to advance economic mobility in their communities. The catalog includes over 50 evidence-based strategies and nearly 200 specific programs that have demonstrated positive economic results. These programs span seven areas:
Early Childhood
K-12 Education
Post-Secondary Education and Workforce Development
Health and Well-Being
Justice and Public Safety
Housing and Community Development
Financial Security
Why Economic Mobility Matters
Economic mobility measurements compare improvements over the life of one generation (intragenerational economic mobility) or across generations (intergenerational economic mobility). Click here for a deeper dive into intergenerational versus intragenerational economic mobility.
These measurements offer important insights into how opportunity is distributed and whether economic systems are truly enabling upward movement for all. One frequent measure of intergenerational economic mobility is the proportion of children that grow up to earn more than their parents. By this measurement, the United States’ economic system is falling short of the promise of upward mobility. In 1940, about 90% of children grew up to earn more than their parents, a testament to the strength of the American Dream during that era. However, by the 1980s, that number had fallen to just 50%, reflecting a troubling decline in economic opportunity and increasing economic inequality.
Source: Opportunity Insights
In this economic climate, NGIN is committed to advancing economic mobility across the United States. In a country where policies and norms have long hindered equal economic participation, NGIN identifies economic growth and ensures that historically economically excluded communities lead, shape, and benefit from that growth. Cities thrive when economic opportunity benefits everyone!
For more information on economic mobility, check our blog and subscribe to our newsletter to learn more about resources and tools that improve economic mobility and be the first to know about future opportunities to engage with NGIN’s work.
