Move to New York or New Jersey if you want to be in the 1%
Looking to pursue the American Dream? If you are, the best chances that you possess of doing so are probably in New Jersey, Maryland or New York. These are the states which are regarded as being the best in helping the American nation in rising up on the income scale, relative to their counterparts as well as absolute terms. This was revealed by a study that was posted from the Economic Mobility Project, at the Pew Center.
On a general level, states in the areas of New England as well as the Mid Atlantic had the most mobile residents on an upward level, while states that are located in the South had lesser mobile inhabitants. This is the first study which has attempted to measure the economic mobility of the people on a State level, and it took an inside look at the incomes of American individuals in each state over a period of ten years, also taking help from the Census Bureau as well as the Social Security Admissions. Researchers pursued groups of different Americans who were nationally representative and currently in the age of 35 to 39, from 1987 to 1997. Then, an examination was undertaken in order to see how the earnings of a certain individual had been altered, precisely ten years after their initial value of income was retrieved.
Throughout the country, the income of the average American individual increased by around 17 percent, as adjusted by the increase in inflation during that period of time too. Among the States as well, great variation was noted all around.
The study was conducted by Erin Currier and Diana Elliott, and it also took in to consideration the possibility as to whether the people were able to move up the ladder of income generation accordingly with their peers too. Meanwhile, on the other side, the average increase in incomes that was noted throughout Alabama and South Carolina was just around 12 percent. In order to get an estimate of this ‘relative upward mobility’ the authors of the study placed their focus on people in the lower half of income distribution table and checked whether those people were able to move up on the income generation ladder by around ten percentiles.
For instance, an individual whose income was first recorded in the 20th percentile will have to show a minimum increase and go up to the 30th percentile at least after ten years in order to be considered as being ‘upwardly mobile’ through the course of this study. As the study revealed, around a third of the people who were researched upon managed to move up to the tenth percentile, hence being considered as ‘upwardly mobile’. On a slightly higher level, around forty percent of the Americans in Connecticut who had started in the lower half of the study managed to move up to ten percentiles over the course of ten years. On the other side, only 26 percent of the people managed the same feat in North Carolina.