Federal Reserve Bank of Boston | bostonfed.org |
Bank Administration, 7 January 2020
What Lies Beneath the Surface
Geography as Economic Destiny
▶ Lewiston, ME
▶ For white male, child of low-income
parents
▶ Household income at age 30 differs by
factor of almost 2, depending on which
tract in Lewiston you grew up in
▶ Same city, less than 1 mile apart.
▶ In Mobile, AL
▶ The relative gap is the same
▶ But the top is $30k versus $41k
▶ Why is this OK?
$ 41K $ 23K
Source: The Opportunity Atlas (Chetty, Friedman and Hendren), https://www.opportunityatlas.org/
Household income at age 30
by location of birth
White male, child of low-income parents
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