This article digs into a study on correlations between poverty, job creation and social mobility (along with several other factors). Unfortunately, just creating new jobs in low-income areas didn’t seem to increase the chances of children moving up the economic ladder compared to their parents. However, living or moving to a neighborhood where most people are employed does increase the chances of a child moving up the economic ladder compared to their parents.
It’s puzzling. The explanation that is easy to jump to is that cultural factors are very important and can’t be changed overnight. I’m sure there is some truth to that. I can think of other potential factors though – maybe parents in low income areas are taking those jobs, but whatever extra income they are pulling in is not enough to offset spending less time with their children. Maybe they are more likely to be single parents, lack extended family support, struggle with substance abuse and mental illness, not be able to afford high quality health care and child care, and live in low-performing school districts. Under these circumstances, it wouldn’t be too surprising that their children are not getting ahead. Those middle class professional parents in the neighborhoods where everyone is employed are probably scraping together enough to pay for decent health care and child care, and are probably demanding more from their school systems.