Quarterly Journal of Economics study finds that growing up in Salt Lake City increases children's upward income mobility.

Date
Aug 2018
Type
Academic / Technical Report
Source
Raj Chetty
Non-LDS
Hearsay
Secondary
Reference

Raj Chetty and Nathaniel Hendren, "The Impacts of Neighborhoods on Intergenerational Mobility II: County-Level Estimates," The Quarterly Journal of Economics 133, no. 3 (August 2018): 1197, 1201

Scribe/Publisher
The Quarterly Journal of Economics
People
Nathaniel Hendren, Raj Chetty
Audience
Reading Public
PDF
Transcription

Among the 50 largest C[ommuting] Z[one]s, Salt Lake City, UT, has the most positive forecasted causal effect for children in below-median income families. We predict that every additional year spent growing up in Salt Lake City will increase a child’s income by 0.17 percentiles (RMSE = 0.07) relative to an average CZ. Rescaling the estimates. . . .into dollar impacts, this estimate implies that growing up in Salt Lake City from birth (assuming 20 years of exposure) would increase children’s incomes at age 26 by 10.4% relative to growing up in the average CZ.

. . . .The predicted impact of moving from the worst CZ (Los Angeles) to the best CZ (Salt Lake City) is 13.7% for children in above-median income families, roughly half the corresponding range for children in below-median income families.

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