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Simple: more households in which individual incomes are shared. Growing up in Salt Lake City hugely increases the chances of being married in adulthood.

In fact, no other city comes even close in terms of causal impact on marriage Fig. Salt Lake City is an outlier here, for reasons related to the specific culture of the city.

Most importantly, about half the population belongs to the Church of Jesus Christ of Latter-day Saints informally referred to as the Mormon Church.

But the variation in the influence of place on outcomes for individuals in many cases differently by gender and for household formation is important more generally.

Other things equal, the places that produce the highest rates of households in which individual incomes are shared will tend to produce higher levels of household income than individual income.

Note that Philadelphia scored lowest of the ten cities in terms of impact on household incomes Fig. Girls growing up poor in Philadelphia do really well in terms of their own adult earnings—but then lose ground at the household level, both because boys do worse, and because they are less likely to be married.

Household formation, then, is an important and often neglected part of the story in the differences between places in terms of intergenerational mobility.

So too are the differences by gender, and we will be returning to that question in a future paper.

While both individual and household income are of course important, including as measures of upward mobility, our view is that household income provides a better proxy for overall wellbeing.

Could marriage also be factor in explaining changes in mobility rates over time? We turn to that question next.

Marriage used to be an equally common experience across class lines. But in recent decades, marriage has become both more common and more stable among more affluent and better-educated Americans.

The marriage gap seems to both reflect and reinforce gaps in income, wealth and education—and is an important contributory factor to cross-sectional inequality.

But it may now also be playing a role in the transmission of status across generations, as children from different backgrounds have different odds of ending up married, and therefore of sharing income within a household.

Research by Chetty et al. In the chart below we illustrate this pattern with data for Newark, the U. These descriptive statistics suggest that as marriage becomes more related to class position, it may also play a more important role in explaining changes in intergenerational mobility.

They first show that relative intergenerational mobility has declined for cohorts born in the early s compared to those born around , measured using both rank-rank slope and intergenerational elasticity IGE.

A higher value indicates greater persistence, and so less mobility. The rank-rank slope rose from 0. Importantly, however, these are measures of household income rank, and so sensitive to changes in household composition as well as individual income.

Davis and Mazumder show first that there has been a significant increase in the relationship between parental income and the marriage rates of their grown-up children.

Specifically, in the later cohort a child with parents at the 75th income percentile was David and Mazumder then attempt to assess how far this widening class gap in marriage rates for children from different backgrounds explains the decline in intergenerational ability.

They find, strikingly, that under reasonable assumptions, the changes in marriage patterns could well explain all of the fall in intergenerational mobility.

As they write :. But caution is required here. First, the analysis is of a very specific time period. Second, taking the rising marriage gradient into account does reduce the drop-in rank-rank mobility to below the level of statistical significance, it does not eliminate it altogether.

With the decreased magnitude, the 0. But the confidence interval still ranges from a decline of 0. Recommit or Get Out.

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