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Wealth Disparities in Social Circles

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A recent study reveals that friendships bridging economic divides significantly boost social mobility, with low-income individuals earning an extra £5,100 a year if they grow up in areas with more income mixing.

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Bridging the Wealth Divide: Friendships and Social Mobility

The Power of Economically Connected Communities

A recent study has found that friendships that bridge economic divides play a significant role in promoting social mobility. Low-income children who grew up in areas with more mixing among income groups are likely to earn an extra £5,100 a year as adults. This phenomenon is often sparked in school, at university, or through hobby and recreation groups such as amateur sports teams.

DATACARD
Breaking Down Barriers: Understanding Social Mobility

Social mobility refers to the movement of individuals, families, or groups between different social classes or strata within a society.

It involves changes in economic status, occupation, education level, and other factors that influence one's position in the social hierarchy.

Research suggests that social mobility is influenced by factors such as family background, education, and access to opportunities.

According to a study by the Pew Research Center, 54% of Americans believe that it's possible for people to improve their economic situation with hard work and determination.

The Benefits of Cross-Class Friendships

The study, which combined anonymised Facebook data covering 20 million adults in the UK with official data, points to the benefits of what the authors call more ‘economically connected communities.’ These areas are characterised by higher levels of friendship across income levels. For example, Kingston upon Thames and Canterbury have a similarly affluent population, but ‘the share of high-income friends among low-income residents is 10% higher in Kingston upon Thames.’

economic_connectedness,friendships,cross_class_friendships,social_mobility,wealth_disparities,social_capital

DATACARD
The Benefits of Economically Connected Communities

Economically connected communities are groups of people living in close proximity, sharing resources and economic opportunities.

These communities often thrive due to collaboration and mutual support among residents.

Studies show that economically connected communities experience increased job creation, reduced poverty rates, and improved overall well-being.

In fact, a study by the World Bank found that for every 10% increase in local economic connectivity, there is a 5% decrease in poverty levels.

By working together, these communities can create sustainable economic growth and improve the quality of life for all residents.

The Role of Social Capital

The research echoes a similar study carried out in the US, and found that the UK tends to be less economically segregated. The poorest half of the population in the UK have about half (47%) of their friendships with the higher-income half, for example, compared with 39% in the US. A survey carried out as part of the research suggested that cross-class friendships also tend to lead to higher levels of happiness and trust in others.

DATACARD
The Benefits of Cross-Class Friendships

Cross-class friendships refer to relationships between individuals from different socioeconomic backgrounds.

Research suggests that such friendships can have a positive impact on social mobility and reduce class-based stereotypes.

A study found that people who had cross-class friends were more likely to support policies benefiting lower-income communities.

Additionally, cross-class friendships can foster empathy and understanding between classes, promoting a more cohesive society.

A New Path Forward

Dr. Antonio Silva, principal investigator at the Behavioural Insights Team (BIT), said: ‘It’s inescapable: rich areas have more rich people, therefore you’re more likely to make friends with rich people.‘ However, when analyzing various factors such as education, health, and income, economic connectedness still comes out as the second strongest predictor of social mobility after income. This early evidence suggests that policies to encourage links like these would be worth pursuing, including expanding access to sports groups or encouraging low-income young people to go to university.

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