If children remain in the economic situation into which they were born, this result is of most concern for children born to low-income families. We examine outcomes for people who were born into low-income families because this represents the greatest need for policy interventions. To provide a simple, clear comparison across cities and neighborhoods, we focus on one indicator of economic opportunity: For people born to low-income parents, how much does their household earn once they reach adulthood? Children of segregated neighborhoods also earn less as adults.Įconomic opportunity in this report is defined as the ability of children born to low-income families to earn enough as adults to support their household. Children earn more as adults when their neighborhood has more families with high incomes, even when their own parents’ income is low. But neighborhood disparities exist, as well. Race disparities are stark: Black children of low-income families earn $9,000 less than White children at age 35. We find that Indianapolis has low economic opportunity overall, especially for children of low-income families. We also recommend further research and policy implications.

1 While this study was nationwide, we focus on highlighting the results in Indianapolis, putting that information in local context, and deepening the research based on local conditions. Research from Harvard Economist Raj Chetty examines how the conditions in which children grew up relate to their earnings in adulthood. The ability of children to move above the economic status of their parents is influenced by the parents’ income, demographics, and neighborhood conditions. Children born to low-income families in Indianapolis in the 1980s grew up to earn less than their peers in almost any other large city.

Economic mobility