Rags to riches an idea promoted in Horatio Algers novel was analyzed through a study. Researchers analyzed children who were born in lower middle class and with hard work and determination reached the upper most class. Comparison between USA and other countries citizen was conducted to check availability of options for changing the class in other developed countries.
The results revealed 7.5% options for scaling the socioeconomic ladder whereas UK had 9% chance for individuals to avail the opportunity for changing their socio economic class. In this queue Canada scored the highest by providing 13.5% chance for the person to move from a low income quintile to a place much higher in the quintile.
Raj Chetty stated that a person chance of moving up a head in the income quintile increase much more if he is a residing in Canada. Regardless of the fact research quoted that moving upward in the income quintile is not easy. Opportunities available in the market of any developing country are less for everyone to attain them. Moreover, if we look at it in a statistical manner maximum earners in the top list of any country might not be more than 20%.
If one doesn’t have economical support from the family than moving from rags to riches that is the lower middle class to an upper class becomes quiet difficult chore as economic inequality is prevailing in USA according to two researches conducted in May on the distribution of economic inequality. Further analyzing there research Chetty et al, tried to assess social change in the lives of 10 million kids born during the year of 1980 to 1982.
Similar studies on 5000 families with children of different ages were selected from major cities with high population was gathered. They were provided with vouchers to help them scale the ladder of economics status in an experiment. The children from the lower class were seen to be more hardworking and earning as compared to one who didn’t have the opportunity to do so.
Moreover, children from middle class were not that prone on scaling the ladder of socio economic as compared to lower class. Further rates of joining college were more in the individual of lower class provided with an opportunity as compared to others in that class.
The basic role played in there changing behavior was the environment not the type of family these children were settled in. lesser the discrimination in them with regard to income and race, higher the probability of mobility.
Last Factor is the stable environment of the family. With single parent shifting to another class becomes more difficult. Not only one’s own household but the majority households in a community effects the cycle.
Diminishing returns seems to be playing role when elderly people move from poorest area to financially strong areas. As compared to younger ages such as teenagers or young adults do not shift in the ladder. This makes it difficult for improving social environment for the children of different ages. So increasing opportunities of education for children is not the only thing needed. Later years of their life should also be considered while making plans for changing their class.
This can be achieved by making people move to better places and starting new projects for less opportunity areas. This will make poor old people avail already provided affordable housing system of the government and young adult would replace them thus helping in increasing the economy of the country and moving themselves from rags to riches.