Climbing the Income Ladder – Location Location Location

In Climbing Income Ladder, Location Matters
New York Times.  By  (PUBLISHED: JULY 22, 2013)

“A study finds the odds of rising to another income level are notably low in certain cities, like Atlanta and Charlotte, and much higher in New York and Boston….

” … Climbing the income ladder occurs less often in the Southeast and industrial Midwest, the data shows, with the odds notably low in Atlanta, Charlotte, Memphis, Raleigh, Indianapolis, Cincinnati and Columbus. By contrast, some of the highest rates occur in the Northeast, Great Plains and West, including in New York, Boston, Salt Lake City, Pittsburgh, Seattle and large swaths of California and Minnesota.

“Where you grow up matters,” said Nathaniel Hendren, a Harvard economist and one of the study’s authors. “There is tremendous variation across the U.S. in the extent to which kids can rise out of poverty.”

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The Economic Impacts of Tax Expenditures – Evidence from Spatial Variation Across the U.S.

by Raj ChettyNathaniel HendrenPatrick Kline, and Emmanuel Saez

“Enabling children to rise out of poverty is a primary goal of policies such as the Earned Income Tax Credit (EITC), the Child Tax Credit, and other tax expenditures. Building on our previous research on the EITC, we study the impact of tax expenditures on intergenerational mobility. We find substantial variation in the economic outcomes of children from poor families across areas of the United States. These differences are modestly correlated with variation in tax expenditure policies across areas, but much variation in children’s success across areas remains to be explained.

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