What is economic mobility?

Economic mobility is the ability to move between economic classes. This can happen during the life of an individual or over several generations. It is possible to experience economic mobility up or down, and social scientists are often interested in the degree of movement between social classes. In a society where economic mobility is high, research seems to suggest that citizens tend to be happier, more productive and more positive about their role in society.

It is important to distinguish between economic and social mobility. Although these concepts are closely tied, making more money does not necessarily place someone in a higher class, as seen in the distinction between "old" and "new" money in some regions of the world. In some countries, it simply is not to be rich in the door of high society. Nations with stricter social structures can experience a high degree of economic mobility without much change in the social strata.

Economic mobility measurement can be based on a number of factorat. One way to look at it is simply to study income with unprocessed income and compare the income of a person with the income of her parents. Inflation may be necessary to create an accurate image. Income jumps throughout their lives or generations indicate economic mobility. Scientists can also look at assets and savings to determine how stable a person's economic class can be in the long run. For example, someone who has savings could have a financial crisis and stay in the same class, while people without savings can experience mobility down.

Another method examines where people fall into the reception quintillas. The movement between the quintiles represents a shift from one economic class to another. It is also possible to explore how much society falls into each quintil in general. In a fairer society, the revenue can be relatively the same, and the population is more or less distributed among quintillas. When economic differences develop, the number of people in the upper quintiles can shrink whileThe number of lower grows.

Support for economic mobility is an important part of fiscal policy in many regions of the world. Governments can participate in activities such as progressive taxation, grants to members of low -income company and other programs to facilitate economic mobility. They can also identify populations with the risk of mobility down and develop specific interventions that help members of these groups.