Category Archives: new york times

Good places for kids’ social mobility

Scholars Raj Chetty, Nathaniel Hedren, Patrick Kline and Emmanuel Saez (from Harvard and Berkeley) have garnered richly deserved  attention for their interesting retrospective look at which places were the best in America for low-income kids to be born in 1980 and 1981 to assure the highest rates of youth mobility.  [Amazingly, to do this, they were able to examine tax returns of all Americans and connect the youth with where they had grown up.]

Map of historic youth mobility in US

[To explore the above map where blue areas are areas of highest mobility and red areas are areas of lowest mobility, visit the New York Times site.]

Their work rhymes with two pieces of research that we have done.

First, they find that the places that promoted the greatest level of mobility were  places high in social capital.  [For an image of social capital by state in the US c. 2000 see here.] This is less surprising, since other scholars have found that places with high social capital were among the places historically to invest in public high schools (e.g., Larry Katz and Claudia Goldin’s work on the birth of American public high school movement in the American heartland).  Moreover, recent research by our research team, highlighted in Robert Putnam’s “Crumbling American Dreams” shows the changes in levels of community solidarity and togetherness, exemplified by the changes in his home town of Port Clinton, OH.

Second, they find that places with greater percentages of minorities were also places that afforded less social mobility for young people.  This resonates with work of Ed Glaeser and Alberto Alesina on how it is harder to foster public investments in places of greater diversity (in the US and Europe) and work that we did in “E Pluribus Unum” that also discusses the short-term challenges of increased diversity.

While their work is retrospective, we are actively involved in gathering data on social mobility for youth from the bottom third of American households (in income and education) that strongly suggests that whether levels of mobility that existed for lower-third youth in the past, future rates of mobility are likely to much lower.  Stay tuned for our evidence of this coming crisis and what we might do about it.

State of economy for less-educated young people compounds growing Opportunity Gap

Pell City 2007 HS graduation; Flick/kwsanders

Pell City 2007 HS graduation; Flick/kwsanders

While parts of the economy have rebounded since the Great Recession of 2008, the effects have been much worse for the poor, and especially the less-educated young Americans, and those not fortunate enough to graduate from college.

Since 2008, the housing market has started to bounce back.

The stock market, for those fortunate enough to have net savings rather than a negative net worth has more than recovered its recessionary losses (pictured is the S&P500 index).

Recovery in S&P500 since 2009 recession

The economy has created 6.15 million jobs from March 2010 through April 2013 (based on provisional numbers for March/April 2013), enough to lower unemployment but only through many people giving up on finding jobs.  The  percentage of Americans employed in the population hasn’t budged over the last 3.5 years and remains fixed at between 58% and 59%. Larry Summers thinks that the numbers of long-term unemployed is the biggest problem facing this country and is at historically unprecedented in the period since the Great Recession of the 1920s and 1930s.

Put this together with the data that David Leonardt released (“The Idled Young Americans“) showing that the impact has disproportionately fallen on young folks.  Moreover, levels of employment among 16-24 year olds, even as recent as May 2013 remain stubbornly at 45%, at levels not seen in the US since the early 1960s.

Our own research on the fact that children born to less educated families are facing a growing opportunity gap.  American young adults from the bottom socioeconomic quarter are graduating from high school or dropping out with less of the hard academic skills or soft non-cognitive skills necessary for life success.  [We find significantly growing gaps between children from the top third or quarter of socioeconomic families and the bottom third or quarter on measures as diverse as involvement in extra-curriculars, involvement in sports, K-12 test scores, obesity, social trust, involvement with religion, social connectedness, volunteering, college attendance, and college completion.]

And the intersection of these two trends — consequences of the current lackluster economy being borne by the young adults and the growing opportunity gap — means that these gaps are borne disproportionately by less educated young adults.

For example, if one looks at employment to population ratios for 25-34 year olds in 2012, it was only 69.8% for those with a high-school degree (but no college), whereas it was 84.4% for those with 4-year college degrees or more.  Another way of putting this is that only 16% of college-educated 25-34 year olds were out of the labor market versus 30% of those with only a high school degree.

And if that were not enough, there is growing body of literature suggesting that experiences of unemployment or involuntarily being terminated from jobs create long-term scarring effects both on the lifetime earnings of these young people, but also their civic and social connectedness throughout their lives.  [See for example Davis/von Wachter or Gregg/Tominey or Brand/Burgard.]

[There is also unpublished data on this scarring effect in: Laurence, James, and Chaeyoon Lim. “The Long-Term and Deepening Scars of Job  Displacement on Civic Participation over the Life-course: A Cross-National Comparative  Study between the UK and the US.”]

We are brewing a recipe for long-term adverse consequences for these young Americans, especially the less educated ones, and our government ought to be POUND-wise, even if it is “PENNY-foolish” in the eyes of others and invest in jobs for these young 16-25 year olds to avoid the much longer long-term adverse effects.

Altruism the key to worker productivity and advancement?

The New York Times Sunday magazine (3/31/13) has an interesting long read by Susan Dominus “Is Giving the Secret to Getting Ahead?” focusing on research by Wharton (U. Penn) workplace organization psychologist Adam Grant who believes, originally based on personal experience and later supported by hard-headed quant studies that altruism both motivates workers to work harder and helps them to advance.

Snippet:

“For Grant, helping is not the enemy of productivity, a time-sapping diversion from the actual work at hand; it is the mother lode, the motivator that spurs increased productivity and creativity. In some sense, he has built a career in professional motivation by trying to unpack the puzzle of his own success. He has always helped; he has always been productive. How, he has wondered for most of his professional life, does the interplay of those two factors work for everyone else?

“Organizational psychology has long concerned itself with how to design work so that people will enjoy it and want to keep doing it. Traditionally the thinking has been that employers should appeal to workers’ more obvious forms of self-interest: financial incentives, yes, but also work that is inherently interesting or offers the possibility for career advancement. Grant’s research, which has generated broad interest in the study of relationships at work and will be published for the first time for a popular audience in his new book, “Give and Take,” starts with a premise that turns the thinking behind those theories on its head. The greatest untapped source of motivation, he argues, is a sense of service to others; focusing on the contribution of our work to other peoples’ lives has the potential to make us more productive than thinking about helping ourselves.”

At a university call center, Grant tried reinforcing the ties to needy students to motivate callers and tested its effectiveness.  He found in 6 repeated tests that even a 5 minute speech by a scholarship recipient now working for Teach for America and testifying how the scholarship had changed his life, on average meant that even a month later fundraisers spent 2.5x as much time on the phone, nearly doubled the number of calls made per hour, and average caller brought in 5x as much money per week.  These results were achieved even though workers used the same script and consciously discounted the impact of the student’s talk.   He and others have found other productivity benefits from “gratitude journals” or “thank you notes.”

“Over the years, Grant has followed up that study with other experiments testing his theories about prosocial motivation — the desire to help others, independent of easily foreseeable payback. In one study, Grant put up two different signs at hand-washing stations in a hospital. One reminded doctors and nurses, “Hand hygiene prevents you from catching diseases”; another read, “Hand hygiene prevents patients from catching diseases.” Grant measured the amount of soap used at each station. Doctors and nurses at the station where the sign referred to their patients used 45 percent more soap or hand sanitizer.”

Grant in his forthcoming book divides the world of workers “divides the world into three categories: givers, matchers and takers. Givers give without expectation of immediate gain; they never seem too busy to help, share credit actively and mentor generously. Matchers go through life with a master chit list in mind, giving when they can see how they will get something of equal value back and to people who they think can help them. And takers seek to come out ahead in every exchange; they manage up and are defensive about their turf. Most people surveyed fall into the matcher category — but givers, Grant says, are overrepresented at both ends of the spectrum of success: they are the doormats who go nowhere or burn out, and they are the stars whose giving motivates them or distinguishes them as leaders.”

Grant says that the key to successful givers is being strategic about doing nice things for others — what he calls the “5 minute favor” and asking if you can add unique value to the person requesting your time, and if not, strategically connecting the asker with other givers or with matchers for whom you have done past favors.  One can easily imagine that if one is strategic about doing favors for others, social capital theory would suggest that one builds up an informal “favor bank” that as the askers move up in the world, put you in a much stronger position to request favors of others.  It increases his pool of willing collaborators and puts him in a larger web of information flows in an era where expertise and knowledge is often distributed.  It is interesting that the motivation for Grant at least in being a giver is not at all about advancement — for him it is the key to doing what he can to conquer mortality.  He endorses William James’ view that  ‘The greatest use of a life is to spend it on something that will outlast it.’

Grant also notes that takers succeed in the short-term but don’t do as well over the long-term perhaps because others use online social networks to punish takers [see e.g., Matthew Feinberg, Joey T. Cheng and Robb Willer, "Gossip as an Effective and Low-Cost Form of Punishment", Behavioral and Brain Science 25(1), Feb 2012.]

He talks about his experience with the University of Michigan fundraising call center about 4 minutes into the following video. One person had a depressing sign on his desk saying “Doing a good job here is like wetting your pants in a dark suit.  You get a warm feeling but no one else notices.”:

I wonder whether his strategy is equally effective for all social strata. Jean Rhodes and others found that post-Katrina low SES survivors  who were more connected with others suffered mental health losses in short-term because all their friends were making demands of them [discussed towards bottom of this blog post].  The workers, like Adam Grant, himself may be less surrounded by needy individuals and more likely to be providing favors to students who will go on to higher stations in life, but very interesting food for thought…

Read Susan Dominus “Is Giving the Secret to Getting Ahead?

Read Adam Grant’s new book, “Give and Take: A Revolutionary Approach to Success” (April 2013)

White achievement gap by class exceeds black-white gap

White class gap in math test scores as great now as black-white gap in the racial backwater prior to Brown vs. Board of Ed.

The New York Times had a powerful and alarming story today “Education Gap Grows Between Rich and Poor, Studies Show“.

One thing that the story didn’t point out is that the class gaps even just within non-Hispanic whites are growing and this also exceeds the black-white test score gap.  I’ve appended a chart showing the within whites 90/10 math scores over time [comparing the math scores of a white child in a family earning $160,000 to the math scores over time of a white child in a family earning $17,500 in 2008].  [This is from an Appendix to Sean Reardon's paper, Figure 5.A2.]


The first graph shows that by 2000, the within white class gap (90/10) ratio has now risen to almost 1.25. It started rising with the birth cohort born around 1972, or in other words high school seniors around 1990.  This white class gap has risen about 65% from 0.75 in the early 1970s to almost 1.25 by 2000.   Reardon notes that 1.0 on this scale is about the difference in math between a 5th grader and an 8th grader.  So the white class gap is probably nearing the difference between an average 5th grader and a 9th grader.  [Interestingly, the white class gaps for math are greater than the class gaps within Blacks or Hispanics, probably because the wealth gap between the 90th and 10th percentiles for whites are wider than the similar wealth gap among Hispanics or Blacks.]

The second graph solid line shows whites and non-whites together but the dotted line on the second chart (the black-white racial gap) has been almost halved over the last 60 years from about 1.2, dropping to around 0.65 by 2000 (about the difference between a 5th grader and a 7th grader).

So even if you take race completely out of the equation, the class gap in math (and reading scores) within whites is almost DOUBLE the racial gap along these same measures and upper class whites are about 2 grade levels ahead compared to the black-white gap.  And the within white class gap in math test scores is about as great as the black-white test score gap in math was in the racial backwater leading up to Brown vs. Board of Education when the Supreme Court recognized that racially separate schools were inherently unequal.

The conclusion is that our focus on racial inequality in education has been important in halving these differences, but in an era of deindustrialization of America and the decline of good-paying high-school education jobs, we need to be paying as great attention to class gaps in math and English achievement if we hope to have vibrant social mobility in the decades ahead for the white working and lower middle class.

See somewhat related strong Op-Ed by Nick Kristof “The White Underclass” (2/9/12) (acknowledging some of the social truth of the cultural and family collapse of the white working class as Charles Murray’s Coming Apart does, while also identifying the much larger structural changes taking place as well which Murray does not).

See earlier blog post on social mobility in America.

No foreclosure from gift debt

Flickr/martingommel

Thomas Meaney, recently reviewed David Graeber’s DEBT: The First 5,000 Years for the NYT Book Review.  [Graeber helped inspire the Occupy Wallstreet movement.]

Meaney writes:

In 1925 the French anthropologist Marcel Mauss published his classic essay “The Gift,” which argued that contrary to the textbook account of primitive man merrily trading beaver pelts for wampum, no society was ever based on barter. The dominant practice for thousands of years was instead voluntary gift-giving, which created a binding sense of obligation between potentially hostile groups. To give a gift was not an act based on calculation, but on the refusal to calculate. In the societies Mauss studied most closely — the Maori of New Zealand, the Haida of the Pacific Northwest — people rejected the principles of economic self-interest in favor of arrangements where everyone was perpetually indebted to someone else.

Picking up where Mauss left off, Graeber argues that once-prevalent relationships based on an incalculable sense of duty deteriorated as buying and selling became the basis of society and as money, previously a marker of favors owed, became valuable in its own right….

So what, then, is to be done? Graeber finds reasons for hope in some unexpected places: corporations where elite management teams often operate more communistically than communes; in the possibility of a Babylonian-style Jubilee for Third World nations and students saddled with government loans; and from his own study of the Malagasy people of Madagascar, who he claims were adept at evading the snares of consumer debt encouraged by the state. But there is a sizable gulf between Graeber’s anthropological insights and his utopian political prescriptions. “Debt” ends with a paean to the “non-industrious poor.” “Insofar as the time they are taking off from work is being spent . . . enjoying and caring for those they love,” Graeber writes, they are the “pioneers of a new economic order that would not share our current one’s penchant for self-destruction.”

It’s an old dream among anthropologists — one that goes back to Rousseau. In 1968, Graeber’s own teacher, Marshall Sahlins, wrote an essay, “The Original Affluent Society,” which maintained that the hunters and gatherers of the Paleolithic period rejected the “Neolithic Great Leap Forward” because they correctly saw that the advancements it promised in tool-making and agriculture would reduce their leisure time. Graeber approves. He thinks it’s a mistake when unions ask for higher wages when they should go back to picketing for fewer working hours.

Michael from the Front Porch Forum (FPF) in Burlington, VT writes in response to Meaney’s quote that he loves that others in his FPF community in Burlington have undertaken a voluntary life of ‘favor debt’ (owing someone a favor) in place of monetary debt:

“Perpetually indebted to someone else”… this sums up so much of what I love about my community life in Burlington, VT right now….

I was raised to value making my contribution to others while taking great pains to avoid accepting the same from others.  So were lots of folks here.  But that’s a recipe for setting yourself apart, for isolation.  As my family has learned to accept favors from those around us, it’s made our contributions to others that much more meaningful and personal.

Now, through Front Porch Forum, MealTrain, our church, school, neighborhood and other means, we ask and offer favors daily from hundreds of friends, neighbors and acquaintances.  Each request works against isolation and lays down another thread in the web of community that supports our life.  This is a crucial asset… as much as our house, my job, the kids’ college savings.

My brother and his family are planning a holiday visit to see us in Vermont this month.  We could all jam into our house, but I know they would sleep better if we had more space for the two families.  Hotels are expensive and distant… B&Bs too.  So, I put the word out to neighbors and got several offers of empty houses that we could use on our block.  These neighbors are traveling out of state and are glad to share their home while they’re away.  We’ve done this a dozen times over the past few years… offering or asking for empty-house guest lodging.  Make that hundreds of times if we include other favors… meals, rides, tools, advice, kids stuff, labor, baby/pet sitting, on and on.

This is incredibly generous and trusting of all involved… but it’s also keeping each of us “perpetually indebted to our neighbors” in a way that makes our community stronger with each exchange.

It’s a wonderful description of generalized reciprocity of the sort that undergirds social capital as discussed in Bowling Alone.

See somewhat related earlier post “Economists ignore a critical third of economy: the social economy

Hat tip to Lew Feldstein for spotting the FPF post.

Two recent articles on the importance of groups for health

Flickr/EdsonHong

Tina Rosenberg (author of the recently blogged about Join the Club) had two recent opinion pieces in the New York Times in November on how groups play a key role in healthy outcomes.

One “Fixes: For Weight Loss, a Recipe of Teamwork and Trust” (11/15/11) focuses on how patients are much more successful in trying to lose weight when they are in groups.

Another “Fixes: At a Big Church, a Small Group Health Solution”
discusses how Saddleback Church (also featured in Bob Putnam and Lew Feldstein’s Better Together) uses small-groups to encourage more healthy lifestyles of their members.

Tip o’ the hat to Lew Feldstein for these articles.

Trust/Approval of federal government hits all-time low

Flickr photo by reskiebak

Approval ratings for Congress dropped into single digits this month for the first time since CBS News and the New York Times began asking the question more than three decades ago.

A New York Times/CBS poll conducted between October 21-24, 2011 showed just 9% percent of US respondents approving of the job of Congressional lawmakers. [The question read "Do you approve or disapprove of the way Congress is handling its job?'] This is a drop from 11% back in September and the first time approval ratings have been in single digits over the almost three and half decades that the question has been asked (since 1977). [84% in the recent October poll said they did not trust congressional lawmakers and 9% said they didn't know.]

Rates of approval peaked in the early 2000s when over 60% approved of the way Congress was handling its job and has dropped precipitously since then.

The same precipitous drop is true about trust of national government.  [Question: "How much of the time do you think you can trust the government in Washington to do what is right?"]  Trust of national government hit an all-time low in October 2011 of 10%.  Back in the early 2000s, about 55% of Americans said they trusted the government in Washington.

One can see the time series for Congressional approval and trust of the federal government since 1977 here.

For sure, a heavy component in these declines in trust are macro assessments about the economy and the country.  That said, at least in the short-term, the precipitous decline in trust of government presents a strong headwind for those who aspire to mobilize government to do something either about record high levels of inequality or to help stimulate the US out of the deepest recession it has experienced in the last century.   I am also working on some scholarship with Chaeyoon Lim (not yet published) that suggests that partisanship may be greater in times of greater economic woes, so this may also be playing a role in the declining trust.

See earlier comments of Bob Putnam from 18 months ago on these declines in governmental trust.