SOcial capital and Economic Mobility

 Abstract

This analysis studies the concept of Social Capital, focusing on its impact on economic mobility in the United States, with particular attention to Orlando, Florida. Social capital is defined as the level of high-income connections within a community, as derived from data sourced from the Opportunity Atlas.

The examination begins with visual representations of social capital distribution across zip codes in Orlando, highlighting disparities in levels of economic connectedness. High school and college distributions further observe the uneven distribution of social capital within the region.

Drawing from data compiled by Raj Chetty et al., the study demonstrates a strong correlation between socioeconomic status, economic connectedness, and economic mobility. Notably, a child's potential for upward mobility is significantly influenced by the level of economic connectedness in their environment.

Measures of economic connectedness, cohesiveness, and civic engagement are compared across Rio Pinar, Orange County, Florida, and the United States. Analysis reveals differences in these metrics, with Rio Pinar exhibiting higher economic connectedness but lower cohesiveness compared to broader areas.

Linear regression models further explore the relationship between economic connectedness and economic mobility. Results indicate a positive association, with each unit increase in economic connectedness correlating with higher adult incomes for children of parents in the 25th percentile income bracket.

Additionally, regression analysis incorporating other covariates, such as employment rates and housing costs, underscores the significant impact of economic connectedness on economic mobility.

In conclusion, this analysis underscores the critical role of social capital, particularly economic connectedness, in shaping economic outcomes and offers insights into potential avenues for promoting greater economic mobility.

 Social Capital and Economic Mobility