The Sconi

A recent study from Harvard economist Raj Chetty and colleagues highlights a decline in economic mobility in Milwaukee County, particularly among white children from low-income families. The Wall Street Journal reported that the study compared the earnings of children born in 1978 and 1992 at age 27 to assess mobility.

The research revealed improvements for African-American children from low-income families born in 1992, with their incomes increasing by 6% compared to those born in 1978. However, white children from low-income families saw an 11% decrease in their adult earnings during the same period. This trend was observed across various Wisconsin counties and nationwide.

The study attributes these changes to neighborhood employment rates rather than individual family characteristics. For example, the employment rate among parents of low-income white children in Milwaukee County dropped from 69% for those born in 1978 to 56% for those born in 1992. "If those employment rates are higher, the kids who grew up in those environments do better in the long run," said Chetty.

Angela Rachidi, a visiting fellow at the Badger Institute, noted that there are social benefits to work beyond financial stability. She emphasized that holding a job helps develop social skills such as reliability and communication, which can positively impact parenting and community engagement.

Rachidi also pointed out that while employment may be correlated with other factors like marriage, it is clear that work itself hones valuable skills. She suggested that policymakers should focus on instilling the value of work through public policies to improve children's futures.

Some private initiatives like The Joseph Project and Partners in Hope aim to connect individuals with work opportunities, particularly former inmates. Rachidi argued that these nonprofit efforts might be more effective than government programs because they can hold individuals accountable.

In conclusion, Rachidi stated, "This is just another piece of evidence that expecting work and instilling that value in public policies is good."

Patrick McIlheran is the Director of Policy at the Badger Institute. Permission to reprint is granted as long as the author and Badger Institute are properly cited.