(Source: Article in Dutch, in Dutch “Financial Times”, and you’ll need to be registered for a free or paid account to access it.)
It works both ways, though, and, of course, with a bias. You’re more likely to be a high earner when your parents were high earners and you’re more likely to be earning little when your parents’ income was low.
9.4% who had parents in the highest income group (20%) are poor 25 years later, while 38.5% of them are in the 20% with the highest incomes. 21% of those whose parents had the lowest incomes (20%) are poor 25 years later while under 15% are among the highest-earning 20% then.
Visually, it looks as follows (red = parents with lowest incomes, blue = parents with highest incomes).
The UK Performs Poorly When it Comes to Social Mobility. Here’s How it Can Improve
07 APR 2022
The article below is from the Goldman Sachs BRIEFINGS newsletter of 07 April 2022.
Compared with other countries, the most disadvantaged in the U.K. are less likely to climb the income ladder and the economically advantaged tend to stay at the top. Covid-19 has increased inequality further, and recent rises in inflation, especially energy costs, are intensifying the problem. In a recent report, Goldman Sachs Research has taken a closer look at the issue, investigating what needs to be done to improve mobility and opportunity for people in the U.K. We sat down with authors of the research, Goldman Sachs’ European Strategist Sharon Bell and Chief U.K. Economist Steffan Ball, to discover more.
Read the remainder of the article – with definitions – on the Goldman Sachs website: https://www.goldmansachs.com/insights/pages/from-briefings-07-april-2022.html