Grantee: Opportunity Insights
Study Type: Correlational Study
Principal Investigator: Raj Chetty, Nathaniel Hendren, Robert B. Fluegge, Federico Gonzalez, Matthew Jacob, Drew Johnston, Martin Koenen, Wilbur Townsend, & Ruby Zhang – Harvard University; Matthew O. Jackson – Stanford University; Theresa Kuchle, Johannes Stroebel, Sara Gong – New York University; Armelle Grondin, Florian Mudekereza, Tom Rutter, Nicolaj Thor – Opportunity Insights; Eduardo Laguna-Muggenburg – Grammarly; Mike Bailey, Pablo Barberá, Monica Bhole, Nils Wernerfelt – Meta Platforms
Project Description: This is a correlational study that examines the relations between the degree of interconnectedness of friend groups, measures of civic engagement (e.g., volunteering), and socioeconomic status (SES, as defined by a machine learning algorithm-generated index comprised of, for example, average income in an individual’s neighborhood and level of educational attainment). The study analyzed data from approximately 21 billion Facebook “friendships” in the United States.
Key Findings: The fraction of high-SES friends among low-SES individuals—which researchers term economic connectedness—is among the strongest predictors of upward income mobility identified to date, whereas other social capital measures are not strongly associated with economic mobility. If children with low-SES parents were to grow up in counties with economic connectedness comparable to that of the average child with high-SES parents, their incomes in adulthood would increase by 20 percent on average. Differences in economic connectedness can explain well-known relationships between upward income mobility and racial segregation, poverty rates, and inequality.
Study Citation: Chetty, Raj, et al. Social Capital I: Measurement and Associations with Economic Mobility. Working Paper 30313, National Bureau of Economic Research, July 2022. Retrieved from https://www.nber.org/papers/w30313.
Full report here.
The Key Findings above were reproduced from the published report and do not necessarily reflect interpretation of Overdeck Family Foundation staff.