Wealth inequality is a barrier to education and social mobility

The US wealth gap is fueling an education and upward mobility gap. Wealth, along with income, can buy educational achievement through more books, tutors, and private schools. But wealth also offers a level of security that income (and financial aid, like Pell grants) can't. Young people in families with more wealth can focus on the academic challenges of higher education instead of the financial ones. Because education is a key way to escape poverty and gain economic independence, increasing access to wealth can mean increasing access to opportunity. Using data from the longitudinal Panel Study of Income Dynamics, we explore the relationship between family wealth and children's higher education achievement and upward mobility. Even after accounting for family income, demographics, and other factors, we find significant differences between young people's education based on their families' wealth.

Excerpt from publication. Show less