How Economic Inequality Shapes Mobility Expectations and Behaviour in Disadvantaged Youth

Abstract

Economic inequality can have a range of negative consequences for those in younger generations, particularly for those from lower-socioeconomic status (SES) backgrounds. Economists and psychologists, among other social scientists, have addressed this issue, but have proceeded largely in parallel. This Perspective outlines how these disciplines have proposed and provided empirical support for complementary theoretical models. Specifically, both disciplines emphasize that inequality weakens people’s belief in socioeconomic opportunity, thereby reducing the likelihood that low-SES young people will engage in behaviours that would improve their chances of upward mobility (for example, persisting in school or averting teenage pregnancy). In integrating the methods and techniques of economics and psychology, we offer a cohesive framework for considering this issue. When viewed as a whole, the interdisciplinary body of evidence presents a more complete and compelling framework than does either discipline alone. We use this unification to offer policy recommendations that would advance prospects for mobility among low-SES young people.

When the American dream fails: The effect of perceived economic inequality on present‐oriented behavior

“…It implies that economic inequality and PEM are independent concepts. However, our data shows that economic inequality affects the belief in economic mobility, which is consistent with the existing literature (e.g., Browman et al, 2019; Davidai & Gilovich, 2015). Therefore, our study can contribute to this stream of research by reporting another instance that economic inequality precedes meritocratic belief.…”

“…For example, since the members of a disadvantaged group of people are more sensitive to justice information when setting long‐term goals (Laurin et al, 2011) the subjective socioeconomic status might lead to variance in the effect of perceived economic inequality. Further, Browman et al (2019) showed that young people from lower‐socioeconomic status are more affected by economic inequality, thereby reducing the motivation to grasp an opportunity that would improve their status. While perceived economic inequality increases present‐oriented behavior regardless of income level in our data, future research can investigate the role of subjective socioeconomic status in perceiving inequality.…”

“…Furthermore, feeling connected to the possibility of reaching a successful future motivates people to persist longer on difficult tasks (Browman, Destin, Kearney, & Levine, 2019; Markus & Nurius, 1986; Oyserman, 2007, 2013; Oyserman & Destin, 2010; Roese & Sherman, 2007). Yoon and Kim (2016) found that when perceiving high economic mobility, materialists have more long‐term rather than short‐term goals because long‐term goals that are perceived as attainable enable the self‐regulation process (Bagozzi & Dholakia, 1999; Baumeister & Vohs, 2007; Yoon & Kim, 2016).…”

Perception of economic inequality weakens Americans’ beliefs in both upward and downward socioeconomic mobility

“…Theorists have speculated that as a result of the disparities it creates in more versus less advantaged individuals' access to resources and opportunities, high levels of economic inequality might lead disadvantaged individuals to believe that future socioeconomic success is unachievable for them (Browman et al, 2019a;Genicot & Ray, 2017;Kearney & Levine, 2016;McCall et al, 2017;Odgers & Adler, 2018;Sawhill & Reeves, 2016). In this way, in addition to the real opportunity-based barriers to economic advancement that inequality imposes (Gilens, 2012;Hayes, 2014;Owens et al, 2016;Reardon, 2011;Reardon & Bischoff, 2011a, 2011bWatson, 2009), systemic inequality may also influence the perceived value of engaging in behaviors that are touted as pathways to future socioeconomic success (e.g., persisting in school; Browman et al, 2019a). In the long-term, these negative psychological effects may lead to even larger gaps between the rich and the rest (Browman et al, 2019a) and perhaps ultimately promote support for systemic change (Day & Fiske, 2017;Newman et al, 2015;Shariff et al, 2016).…”

“…Given the important consequences of people's perceptions of socioeconomic mobility for health and motivation, researchers have begun to examine how Americans' perceptions and experiences of economic inequality-an increasingly present factor in contemporary American life-contributes to their mobility beliefs. Psychological, economic, and sociological theorists have proposed that unequal environments likely signal to inhabitants that few people will be able to acquire wealth in their society (Browman et al, 2019a;Genicot & Ray, 2017;Kearney & Levine, 2016;McCall, Burk, Laperrière, & Richeson, 2017;Odgers & Adler, 2018;Sawhill & Reeves, 2016). Specifically, economic inequality entails disparities in lower-and higher-SES individuals' ability to access resources and opportunities that contribute to success and well-being in life, such as well-funded schools and social services, jobs with livable wages and benefits, safe neighborhoods, and political influence (Gilens, 2012;Hayes, 2014;Owens, Reardon, & Jencks, 2016;Reardon, 2011;Reardon & Bischoff, 2011a, 2011bWatson, 2009).…”