[Peace-discuss] Growing inequality in the US

[C. G. Estabrook]

	Unequal America
	Tuesday 01 July 2008
	Elizabeth Gudrais
	Harvard Magazine

Causes and consequences of the wide-and growing-gap between rich and poor.

     When Majid Ezzati thinks about declining life expectancy, he says, "I think 
of an epidemic like HIV, or I think of the collapse of a social system, like in 
the former Soviet Union." But such a decline is happening right now in some 
parts of the United States. Between 1983 and 1999, men's life expectancy 
decreased in more than 50 U.S. counties, according to a recent study by Ezzati, 
associate professor of international health at the Harvard School of Public 
Health (HSPH), and colleagues. For women, the news was even worse: life 
expectancy decreased in more than 900 counties-more than a quarter of the total. 
This means 4 percent of American men and 19 percent of American women can expect 
their lives to be shorter than or, at best, the same length as those of people 
in their home counties two decades ago.

     The United States no longer boasts anywhere near the world's longest life 
expectancy. It doesn't even make the top 40. In this and many other ways, the 
richest nation on earth is not the healthiest. Ezzati's finding is unsettling on 
its face, but scholars find further cause for concern in the pattern of health 
disparities. Poor health is not distributed evenly across the population, but 
concentrated among the disadvantaged.

     Disparities in health tend to fall along income lines everywhere: the poor 
generally get sicker and die sooner than the rich. But in the United States, the 
gap between the rich and the poor is far wider than in most other developed 
democracies, and it is getting wider. That is true both before and after taxes: 
the United States also does less than most other rich democracies to 
redistribute income from the rich to the poor.

     Americans, on average, have a higher tolerance for income inequality than 
their European counterparts. American attitudes focus on equality of 
opportunity, while Europeans tend to see fairness in equal outcomes. Among 
Americans, differences of opinion about inequality can easily degenerate into 
partisan disputes over whether poor people deserve help and sympathy or should 
instead pull themselves up by their bootstraps. The study of inequality attempts 
to test inequality's effects on society, and it is delivering findings that 
command both sides' attention.

     Ezzati's results are one example. There is also evidence that living in a 
society with wide disparities-in health, in wealth, in education-is worse for 
all the society's members, even the well off. Life-expectancy statistics hint at 
this. People at the top of the U.S. income spectrum "live a very long time," 
says Cabot professor of public policy and epidemiology Lisa Berkman, "but people 
at the top in some other countries live a lot longer."

     Much is still unknown in this dynamic field, where Harvard is home to 
pioneers who first recognized income inequality as worthy of study and younger 
scholars at the forefront of its study today. The variety of disciplines 
featured in presentations of the University's Multidisciplinary Program on 
Inequality and Social Policy-economics, sociology, political science, public 
policy, health, medicine, education, law, and business-highlights the field's 
broad importance.

     Because of the subject's complexity and the scarcity of consistent data 
that would allow comparison between countries and across wide timespans, 
research findings are often highly specific or framed in the language of 
interesting coincidences, rather than as definitive conclusions. Even when 
discernable patterns exist, there tend to be counter-examples; for instance, the 
United States, with high inequality, has low life expectancy compared to Denmark 
and Finland, with very low inequality-but in Spain and Italy, with inequality 
somewhere in between, life expectancy is even longer.

     But the coincidences are intrig-uing indeed. Research indicates that high 
inequality reverberates through societies on multiple levels, correlating with, 
if not causing, more crime, less happiness, poorer mental and physical health, 
less racial harmony, and less civic and political participation. Tax policy and 
social-welfare programs, then, take on importance far beyond determining how 
much income people hold onto. The level of inequality we allow represents our 
answer to "a very important question," says Nancy Krieger, professor of society, 
human development, and health at HSPH: "What kind of society do we want to live in?"

     Keeping Up With the Joneses

     The United States is becoming even more unequal as income becomes more 
concentrated among the most affluent Americans. Income inequality has been 
rising since the late 1970s, and now rests at a level not seen since the Gilded 
Age-roughly 1870 to 1900, a period in U.S. history defined by the contrast 
between the excesses of the super-rich and the squalor of the poor.

     Early in the twentieth century, the share of total national income drawn by 
the top 1 percent of U.S. earners hovered around 18 percent. That share hit an 
all-time high in 1928-when top earners took home 21.1 percent of all income, 
including capital gains-then dropped steadily through the next three decades. 
Amid the post-World War II boom in higher education, and overall economic 
growth, the American middle class swelled and prospered, and the top 1 percent 
of earners took home less than 10 percent of all income through the 1960s and 
1970s. Since then, the topmost 1 percent have seen their share rise again: it 
shot past 15 percent in 1996 and crested at 20.3 percent in 2006, the most 
recent year for which numbers are available.

     To describe the distribution of income inequality in the United States, 
Allison professor of economics Lawrence F. Katz likes to use the analogy of an 
apartment building. "Over the last 25 years," he says, "the penthouse has gotten 
really, really nice. All sorts of new gadgets have been put in. The units just 
below the penthouse have also improved a lot. The units in the middle have 
stayed about the same. The basement apartment used to be OK, but now it's gotten 
infested with cockroaches and it's been flooding." (See graph, page 26.)

     The argument that none of this matters as long as the overall economy is 
growing-that a rising tide lifts all boats, as President John F. Kennedy 
famously said-is the subject of vigorous academic review, with mixed results, 
but it may not be the most important question. Picture a buoyant luxury cruise 
ship surrounded by dilapidated dinghies, full of holes and on the verge of 
sinking. The fact that the tide has lifted them does not mean they are doing well.

     This is a concept social scientists call relative deprivation. The idea is 
that, even when we have enough money to cover basic needs, it may harm us 
psychologically to see that other people have more. When British economist Peter 
Townsend developed his relative deprivation index in 1979, the concept was not 
new. Seneca wrote that to be poor in the midst of riches is the worst of 
poverties; Karl Marx wrote, "A house may be large or small; as long as the 
neighboring houses are likewise small, it satisfies all social requirement for a 
residence. But let there arise next to the little house a palace, and the little 
house shrinks to a hut."

     Investigating whether relative deprivation and the negative emotions it 
engenders help explain why the poor have worse health than the rich in most 
societies began with epidemiologist Michael Marmot's study of British civil 
servants in the 1960s and 1970s. Marmot found that the lower-ranking bureaucrats 
had elevated levels of stress hormones compared to their high-status coworkers, 
even though the low-ranking workers still had job security, a living wage, 
decent hours, and benefits.

     Others have found similar links. Examining health outcomes for identical 
twins raised together-pairs that shared genes and environment-Nancy Krieger 
found that when the twins became adults, if one was working class and the other 
professional, the working-class twin's health was, on average, worse.

     There is little question that it is bad for one's health to be poor. 
Americans at the 95th income percentile or higher can expect to live nine years 
longer than those at the 10th percentile or lower. The poor are more likely to 
develop illnesses such as diabetes, hypertension, heart disease, and cancer, and 
there is evidence that relative deprivation and the stress it engenders are 
involved. When high inequality and rising top incomes shift society's accepted 
standards of living upward, it seems that people experience deprivation even 
when they have adequate food, clothing, and shelter. The official U.S. poverty 
rate-12.3 percent in 2006-is relatively low, but scholars agree that number is 
essentially meaningless.

     The poverty threshold was developed in 1965 based on the cost of a grocery 
budget "for temporary or emergency use when funds are low," multiplied by three. 
It was "arbitrary," says Wiener professor of social policy Christopher Jencks, 
"but once it was adopted, it was politically impossible to change it." That 
threshold has been adjusted for inflation, but does not take into account the 
fact that housing prices, energy prices, and certain other costs have grown 
faster than the consumer price index (CPI). "Going to movies, eating out at 
restaurants, going on occasional vacations, having Internet access and a cell 
phone-none of these things are in the federal poverty level," says Ichiro 
Kawachi, professor of social epidemiology at HSPH and associate professor of 
medicine at Harvard Medical School (HMS). "What matters for functioning in 
society is what the average person is able to do." During the same period, the 
Gallup Poll definition of the poverty line-based on asking people how much 
income they need not to feel deprived-has risen much more steeply than the CPI.

     Kawachi, who grew up in Japan, believes a predominant consumption culture 
in the United States exacerbates relative deprivation. "The Japanese have a very 
strong culture against conspicuous displays of affluence," he says. "When I was 
a child growing up in suburban Tokyo, it was very difficult to distinguish, by 
dress or anything else, rich kids from poor kids-whereas in America, bring it on!"

     As further evidence of a correlation between inequality and consumption 
culture, he points to national spending on advertising as a percentage of gross 
domestic product (GDP). The top-ranked countries on this measure, according to 
United Nations (UN) data, are Colombia, Brazil, and Venezuela-countries with 
inequality levels among the highest in the world-but also Australia, New 
Zealand, the United Kingdom (U.K.), and the United States, countries with higher 
inequality than similarly prosperous peers.

     Japan comes second only to Denmark in terms of equal-income distribution 
among its inhabitants, according to United Nations data. And life expectancy at 
birth for the Japanese is 82.3 years, compared to Americans' 77.9 years, even 
though per-capita GDP in the United States is about $10,000 more than in Japan. 
"It's pretty clear that an egalitarian ethos runs along with the idea of having 
strong safety nets and protecting the health of the most vulnerable," says 
Kawachi, who also directs HSPH's Center for Society and Health. "And that's 
reflected in national health statistics."

     The United States ranks twenty-first among the 30 nations in the 
Organization for Economic Cooperation and Development (OECD) in terms of life 
expectancy, and twenty-fifth in terms of infant mortality. Kawachi and others 
have found that the U.S. counties with the most income inequality stack up 
poorly on health measures, and as mortality rates have fallen nationwide, they 
have fallen most slowly in states where income inequality increased the most-a 
cause for concern, whatever the explanation.

     American Exception?

     One widely used measure of inequality is the Gini coefficient, named for 
Italian statistician Corrado Gini, who first articulated the concept in 1912. 
The coefficient measures income distribution on a scale from zero (where income 
is perfectly equally distributed among all members of a society) to one (where a 
single person possesses all the income). For the United States, the Gini 
coefficient has risen from .35 in 1965 to .44 today. On the per-capita GDP 
scale, our neighbors are Sweden, Switzerland, and the U.K.; on the Gini scale, 
our neighbors include Sri Lanka, Mali, and Russia. (Even with this basic measure 
of inequality, it is difficult to get comparable data for all countries, and 
some other sources find a much wider gap between the United States and Russia. 
For instance, the Luxembourg Income Study ranks Russia at .43 and the United 
States at .37, and does not even list Sri Lanka and Mali.)

     The recent increase in inequality reflects a migration of money upward as 
salaries have ballooned at the top. In 1965, the average salary for a CEO of a 
major U.S. company was 25 times the salary of the average worker. Today, the 
average CEO's pay is more than 250 times the average worker's. At the same time, 
the government is doing less to redistribute income than it has at times in the 
past. The current top marginal tax rate-35 percent-is not the lowest it's 
been-there was no federal income tax at all until 1913-but it is far lower than 
the 91-percent tax levied on top earners from 1951 to 1963. Meanwhile, forces 
such as immigration and trade policy have put pressure on wages at the bottom.

     Tax policies and employer-pay practices affect income distribution 
directly. But what governs these pay practices, and why have American voters and 
politicians chosen the tax policies they have? One answer lies in Americans' 
unique attitudes toward inequality. Asked by the International Social Survey 
Programme whether they agreed or disagreed with the statement that income 
differences in their home country are "too large," 62 percent of Americans 
agreed; the median response for all 43 countries surveyed-some with a much lower 
degree of inequality-was 85 percent.

     Americans and Europeans also tend to disagree about the causes of poverty. 
In a different survey-the World Values Survey, including 40 countries-American 
respondents were much more likely than European respondents (71 percent versus 
40 percent) to agree with the statement that the poor could escape poverty if 
they worked hard enough. Conversely, 54 percent of European respondents, but 
only 30 percent of American respondents, agreed with the statement that luck 
determines income.

     It makes intuitive sense that those who view poverty as a personal failing 
don't feel compelled to redistribute money from the rich to the poor. Indeed, 
Ropes professor of political economy Alberto Alesina and Glimp professor of 
economics Edward L. Glaeser find a strong link between beliefs and tax policy: 
they find that a 10-percent increase in the share of the population that 
believes luck determines income is associated with a 3.5-percent increase in the 
share of GDP a given nation's government spends on redistribution (see "Down and 
Out in Paris and Boston," January-February 2005, page 14).

     These attitudes, in turn, are rooted in U.S. history, says Christopher 
Jencks, whose 1973 book Inequality examined social mobility in the United 
States. Jencks has been studying inequality and social class since the 1960s, 
and has written dozens of journal articles, essays, and book chapters, as well 
as four more books, on the subject. He looks back to the Constitution's framers, 
who enshrined property rights as sacred and checked the government's ability to 
control the national economy. "The founding fathers didn't want the government 
to do that much," he says.

     The Constitution is structured in such a way that it is harder to change 
than the constitutions of Europe's welfare states, where left-leaning groups 
have succeeded at writing in change. By and large, Alesina and Glaeser write, 
the U.S. Constitution "is still the same document approved by a minority of 
wealthy white men in 1776." And the "vestiges of feudalism" in European society 
make leftist arguments appealing there, whereas American politicians' rhetoric 
has emphasized individual agency since the time of George Washington (who wrote 
in 1783 that if citizens "should not be completely free and happy, the fault 
will be intirely their own"). The authors cite a 1980s history curriculum for 
public schools in California ("hardly the most right-wing of states," they note) 
that instructed, "A course should assess the role of optimism and opportunity in 
a land of work: the belief that energy, initiative, and inventiveness will 
continue to provide a promising future."

     An alternative, and possibly complementary, explanation points to the 
United States's particular place in geography and history. Jencks also finds 
this persuasive. "The highest levels of inequality are found in the New World 
and not the Old, for reasons we don't understand," he says (see chart above). 
Societies with higher inequality also tend to have higher crime rates, although 
it's not clear which way the causal arrow runs, or if it exists. "These are 
societies built on conquest, many of them on slavery," Jencks adds. "A lot of 
the inequality may just be the legacy of those things."

     Former colonies such as Haiti and Namibia inhabit the top end of the Gini 
scale, with coefficients of .59 and .74, respectively. But there are exceptions 
to the pattern: the low end of the scale includes transitional economies that 
are far from rich (Belarus and Moldova, with coefficients of .30 and .33), and 
former colonies (Ethiopia and Laos, with coefficients of .30 and .35). For all 
the scholarly study, consensus on whether the Gini coefficient can, in and of 
itself, say something good or something bad about a country is still lacking. 
Still, scholars are using what evidence does exist to ask, and test, whether the 
United States has things in common with Sri Lanka, Mali, and Russia, as it 
undoubtedly does with Sweden, Switzerland, and the U.K.

     The excesses of the Gilded Age led, in the decades that followed, to a 
backlash in the form of the minimum wage and other labor laws to protect 
workers, business and financial-market regulation to protect consumers, social 
safety-net programs-Social Security, Medicare, Medicaid-and infrastructure 
investment to benefit all. But as the United States moves from a period of 
relatively balanced income distribution back into higher inequality, it remains 
to be seen whether these twentieth-century developments will enable the country 
to escape the problems that often accompany high inequality.

     Left Out at the Bottom

     An argument commonly made in inequality's defense is that it serves to 
motivate. Here, Kawachi cites evidence from the sports world. A 1990 study of 
golfers found that they performed best in professional tournaments, where the 
spread in the size of the prize money is widest. Similarly, a study of 
professional auto racers found that performance improved as the spread in the 
size of the various prizes widened.

     So inequality may act on the human psyche to elicit hard work and high 
achievement-but it also may make us more individualistic. In a study of baseball 
players, teams with wider pay dispersion performed more poorly-and so did 
individual players within those teams. "In a world in which each individual is 
looking out for themselves, players will tend to concentrate on improving their 
own performance to the exclusion of team goals, since their own performance is 
what matters for moving up the pay scale," Kawachi and Bruce P. Kennedy (a 
former HSPH professor who passed away this year) wrote in The Health of Nations: 
Why Inequality Is Harmful to Your Health. "Concentrating on trying to hit more 
home runs or improving one's own hitting average are not necessarily the tactics 
that lift team performance-as opposed to, say, practicing great defense."

     This gets at the ways inequality may affect the fabric of society. Perhaps 
motivated by inequality and the prospect of getting ahead, Americans work longer 
hours than their European counterparts-about 200 more hours per year, on 
average, than the British, and 400 more hours per year than the Swedes. Again, 
there are counter-examples (the Japanese work almost as much as Americans do, 
just 50 hours less a year), but in any case, time spent at work is time not 
spent with friends or family, and this has its own implications for health.

     As an outreach worker in San Francisco in the 1970s, Lisa Berkman noticed 
that her clients in the North Beach and Chinatown neighborhoods-poor or 
working-class, but with the strong social connections typical of immigrant 
communities-had far better health than her clients in the gritty Tenderloin 
district, who were much more socially isolated and disconnected from one 
another. The link between social integration and mortality risk became the 
subject of Berkman's dissertation at Berkeley, where she earned her Ph.D. in 
1977. At the time, the idea that social ties could protect health was radical. 
Now it is accepted wisdom-and a factor that, Berkman believes, helps to explain 
the extraordinarily high life expectancy in Spain and Italy.

     But the danger of disconnectedness may go beyond being less happy or even 
less healthy. Kawachi and Kennedy cited a wealth of evidence that increasing 
income inequality goes hand in hand with a decrease in "social capital," a 
concept akin to community involvement that incorporates, among other things, 
social relationships, trust, reciprocity among friends and neighbors, and civic 
engagement. (Malkin professor of public policy Robert Putnam made a similar 
argument in his seminal 2000 book Bowling Alone.) Letting social capital atrophy 
means a less cohesive populace that, at the extreme, leaves entire classes of 
people disadvantaged and excluded. "The big worry," says Lawrence Katz, "is 
creating something like a caste society."

     As American neighborhoods have become more integrated along racial lines, 
they have become more segregated along income lines and, some research 
indicates, with regard to all manner of other factors, including political and 
religious beliefs. (The Big Sort, a new book by journalist Bill Bishop, examines 
this evidence.) What's more, even along racial lines, American society is still 
far from integrated. Sociologist David R. Williams, Norman professor of public 
health and professor of African and African American studies, has examined 
racial discrimination and health in the United States and elsewhere, including 
South Africa, where in 1991, under apartheid, the "segregation index" was 90, 
meaning that 90 percent of blacks would have had to move to make the 
distribution even. "In the year 2000," says Williams, "in most of America's 
larger cities-New York City, Detroit, Chicago, Milwaukee-the segregation index 
was over 80." Only slightly lower, that is, than under legally sanctioned apartheid.

     When a society is starkly divided along racial or ethnic lines, the 
affluent are less likely to take care of the poor, Glaeser and Alesina have 
found. Internationally, welfare systems are least generous in countries that are 
the most ethnically heterogeneous. Those U.S. states with the largest black 
populations have the least generous welfare systems. And in a nationwide study 
of people's preferences for redistribution, Erzo F.P. Luttmer, associate 
professor of public policy at the Harvard Kennedy School (HKS), found strong 
evidence for racial loyalty: people who lived near poor people of the same race 
were likely to support redistribution, and people who lived near poor people of 
a different race were less likely to do so. Differences in skin color seem to 
encourage the wealthy to view the poor as fundamentally different, serving as a 
visual cue against thinking, "There but for the grace of God go I."

     Alesina's work investigates this cognitive process as an explanation for 
the high crime rates in less equal societies. Rather than following the 
common-sense explanation that the poor see what the rich have and covet it, 
leading to burglary and violent crime, Alesina argues that as the incomes of the 
rich and poor diverge, so do their interests. Members of a relatively equal 
society find it relatively easy to reach agreement about what the purpose and 
priorities of a legal system should be. But if the rich favor protecting 
property, while the poor care more about preventing and punishing interpersonal 
violent crime, the lack of consensus will produce a weak system that fails to 
meet the desires of either group. In one essay, his colleague Glaeser offers 
this apocalyptic prediction: "Great gaps between rich and poor may...hurt 
democracy and rule of law if elites prefer dictators who will protect their 
interests, or if the disadvantaged turn to a dictator who promises to ignore 
property rights."

     This doesn't seem possible in a democracy such as the United States, where 
each citizen's vote carries the same weight regardless of income (the 
electoral-college system notwithstanding). In fact, given the shape of the 
income distribution, it seems that Americans would elect leaders whose policies 
favor the poor and middle class. Mean household income in 2004 was $60,528, but 
median household income was only $43,389. More than half of households make less 
money than average, so, broadly speaking, more than half of voters should favor 
policies that redistribute income from the top down. Instead, though, 
nations-and individual states-with high inequality levels tend to favor policies 
that allow the affluent to hang onto their money.

     Filipe R. Campante, an assistant professor of public policy at HKS and a 
former student of Alesina's, thinks he's discovered why. After investigating 
what drives candidates' platforms and policy decisions, Campante has concluded 
that donations are at least as influential a mode of political participation as 
votes are.

     Previous research has shown that voter turnout is low, particularly at the 
low end of the income spectrum, in societies with high inequality. Again, this 
is counterintuitive: in unequal places, poor people unhappy with government 
policies might be expected to turn out en masse to vote, but instead they stay 
home. Campaign contributions may provide the missing link.

     Candidates, naturally, target voters with money because they need funds for 
their campaigns. And since the poor gravitate toward parties that favor 
redistribution and the wealthy align themselves with parties that do not, 
campaign contributions end up benefiting primarily parties and candidates whose 
platforms do not include redistribution. By the time the election comes around, 
the only candidates left in the race are those who've shaped their platforms to 
maximize fundraising; poor voters, says Campante, have already been left out. In 
a study of campaign contributions in the 2000 U.S. presidential election, he 
found that higher income inequality at the county level was associated with 
fewer people contributing to campaigns, but contributing a larger amount on 
average-so the haves participated, and the have-nots did not.

     The solution, he says, is not to scrap the system altogether in favor of 
full public financing, but to enact contribution limits strict enough to level 
the playing field. He views contributions not as bribery or buying policy, but 
as a legitimate form of civic engagement. "The ideal system," he says, "would be 
a system where you have a really broad base of contributors that are 
contributing relatively small amounts....You want parties to be responsive to 
voters. Donations are a way in which parties are made responsive to voters."

     Buffers Against Inequality

     The effects of relative deprivation can come in a form more tangible than 
stress or low self-esteem. Krieger uses the example of a job interview. In a 
society where the average person has a cell phone, it can hurt one's job chances 
not to have one. Wearing old clothes to a job interview might be interpreted as 
a sign of not taking the interview seriously, when in fact the problem is 
inability to afford a new outfit. Bad teeth, which require money to fix, can 
trigger disgust in prospective employers and even hold people back from making 
friends. "Your income," Krieger says, "can decline to a point where you're no 
longer able to participate meaningfully in society."

     Stress can also make people behave in ways they otherwise wouldn't. David 
Williams believes that the "hierarchy of needs" framework helps explain why, the 
poorer people are, the less likely they are to take care of their health. The 
framework, developed in 1943 by psychologist Abraham Maslow, defines the needs 
that motivate human behavior and the priority people assign to those needs. 
Physiological needs (eating, sleeping, breathing) form the foundation; not until 
those needs are met can people pursue needs in the higher categories (in 
succession: safety, love/belonging, esteem, and self-actualization). "If people 
are worried about their basic needs of survival and security and food and 
shelter," says Williams, "they cannot worry about the fact that a cigarette, 
which is providing relief from stress now, is going to cause lung cancer 20 
years from now. If you can address the basic needs so people are no longer 
worried about them, you free them to consider those larger, higher-level needs 
that have long-term consequences for their well-being."

     Lisa Berkman's latest project aims to let low-wage workers focus on such 
higher-order needs. In a study of nursing-home employees, Berkman found that 
nursing assistants, janitors, and kitchen workers had far less flexibility than 
higher-status workers in terms of being able to leave work if a family member 
fell ill, and that this lack of flexibility was related to increased risk of 
heart disease and chronic sleep problems. Now she is following nursing homes and 
retail establishments to see what happens when they implement more flexible 
policies. If workers in high-demand, low-wage jobs can spend more time with 
their families and stop worrying about getting fired if they need to handle an 
emergency, she says, "workplace policies may have a profound effect on health."

     Improving living conditions in poor neighborhoods is another way to 
alleviate poverty's ill effects even in the absence of income redistribution, 
says Williams. The poor are more likely to smoke, to eat poorly, and to lead 
sedentary lives. These are personal choices-but every choice is made in context, 
and one's surroundings affect the choices one makes. "When people live in areas 
where there aren't supermarkets that sell fresh fruits and vegetables, their 
intake of fresh fruits and vegetables is dramatically lower," he says. "If 
people live in areas where there aren't sidewalks, where there aren't safe bike 
paths and places to walk and playgrounds, or where the rate of crime is so high 
that it's not safe to go outside, then their level of exercise is much lower and 
their rates of obesity are higher." Building parks and sidewalks and bringing 
farmers' markets to poor neighborhoods, then, makes it easier for residents to 
make healthy choices.

     Another category of initiatives aims at improving living conditions for 
poor people by giving them vouchers to move to better neighborhoods, but the 
details are important, says Dolores Acevedo-Garcia, an HSPH associate professor 
of society, human development, and health. She is helping design the 
public-health component of one such program. Stemming from a landmark 2005 
desegregation court case, it has already enabled about 1,300 former tenants of 
Baltimore public housing to move to suburban communities. "What people are 
expecting," she says, "is that if people move to a new neighborhood, they're 
automatically going to do better. Well, in fact, a lot of this is about 
connecting people to resources": for example, helping them find landlords who 
will rent to them-not the easiest thing in an unfamiliar neighborhood.

     The aid doesn't stop there. Many doctors in affluent communities don't 
accept Medicaid; Acevedo-Garcia's proposal would have case workers help clients 
find doctors who do, and in some cases persuade doctors to start. "People may be 
used to doing their shopping at a convenience store or a liquor store," she 
says; case workers will tell them which grocery store has good produce at low 
prices, and where to catch the bus that will take them there. Something as 
simple as taking the new residents to a park can make a difference, she says: 
"They may not be used to the idea of exercising outside if they came from a 
neighborhood that was not safe."

     Unequal Chances

     "Adults' economic status is positively correlated with their parents' 
economic status in every society for which we have data," write Christopher 
Jencks and Laura Tach, a doctoral student in sociology and social policy, "but 
no democratic society is entirely comfortable with this fact." The prospect of 
upward mobility forms the very bedrock of the American dream, but analyses 
indicate that intergenerational mobility is no higher in the United States than 
in other developed democracies. In fact, a recent Brookings Institution report 
cites findings that intergenerational mobility is actually significantly higher 
in Norway, Finland, and Denmark-low-inequality countries where birth should be 
destiny if inequality, as some argue, fuels mobility.

     In the United States, the correlation between parents' income and 
children's income is higher than chance: 42 percent of children born to parents 
in the bottom income quintile were still in the bottom quintile as adults, and 
39 percent of children born to parents in the top quintile remained in the top 
quintile as adults, according to the Brookings analysis. But it is difficult to 
see whether mobility is increasing or decreasing, because it would require 
comparing specific individuals' incomes to their parents' incomes, against the 
wider backdrop of income distribution across society at that time. Because data 
with that level of detail do not exist for earlier periods, scholars can't say 
with certainty whether the results represent an increase or a decrease in 
mobility from other periods in American history.

     Americans' steadfast belief in mobility probably stems from increases in 
absolute, rather than relative, mobility. As the overall economy mushroomed 
throughout the nation's history, the majority of people exceeded their parents' 
income. Recall Katz's apartment building analogy; rather than tenants moving 
from one floor to another, the entire building was shifting ever higher on a 
hill. But "if anything," Alesina and Glaeser write, "the American poor seem to 
be much more 'trapped' than their European counterparts," in the sense that 
fewer people who start life in the bottom quintile ever make it out.

     This is puzzling given American society's emphasis on fairness and 
openness. Lee professor of economics Claudia Goldin and Katz detect an 
explanation in the increasing cost of college tuition. In 1950, the average 
tuition price at a private college was roughly 14 percent of the U.S. median 
family income; public college tuition was even lower (only 4 percent). 
Percentages for both types of institutions fell further in the ensuing decades, 
bottoming out around 1980, but then rising steeply ever since. In 2005, the cost 
of attending the average public college was 11 percent of median family income; 
for private colleges, the average was 45 percent. There is financial aid, but 
not enough, and the system "can be harder to crack than Fort Knox," Katz and 
Goldin write in their new book, The Race between Education and Technology.

     For most of the twentieth century, the average American exceeded his 
parents' education level by a significant margin: between 1900 and 1975, the 
average American's educational attainment grew by 6.2 years, or about 10 months 
per decade. Then, between 1975 and 1990, the authors find that there was "almost 
no increase at all"; from 1990 to 2000, there was a gain of just six months. 
Although college graduation rates for women are still rising steadily, for men 
they have barely increased since the days of the Vietnam draft.

     At the same time, the "college wage premium" has also increased. In 1975, 
the average college graduate's hourly wage was 24 percent higher than the 
average high-school graduate's. By 2002, that number had risen to 43 percent. 
Katz and Goldin say this increase indicates higher demand for workers with 
college degrees, even as computers have eliminated the type of jobs a 
high-school-diploma recipient or mediocre college graduate would have done 25 
years ago: clerical work, basic accounting, middle management. Technology has 
exerted downward pressure on those workers' pay, explaining stagnating wages at 
the middle and bottom of the income distribution.

     The United States once led the world in the rate at which its citizens 
finished college; it now falls in the middle of the OECD pack. It could lead 
again if Americans made a decision to fund higher education the way they chose 
to fund universal public high-school education early in the last century. "If 
you had made people borrow money to go to high school in the early twentieth 
century," says Katz, "you wouldn't have seen the same sort of expansion." But as 
technology continues to advance, if Americans do not break down barriers to 
higher education, the authors foresee an even more acute shortage of highly 
trained workers-and, other things being equal, a further increase in inequality.

     --------

     Elizabeth Gudrais is an associate editor of Harvard Magazine.

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