Raj Chetty on the Science of Economic Opportunity: Insights from Experimental & Observational Data

Children’s chances of earning more than their parents have fallen from 90% to 50% over the past half-century in America. How can we improve opportunities for upward economic mobility? This talk will present findings from a recent set of studies at Opportunity Insights that use various sources of big data—ranging from anonymized tax records to social network data—to understand the science of economic opportunity. Among other topics, the talk will discuss how and why children’s chances of climbing the income ladder vary across neighborhoods, how highly selective colleges may amplify the persistence of privilege, and the role of social capital as a driver of upward mobility. Methodologically, the talk will focus on how novel insights can be obtained by combining experimental and large-scale observational data. The talk will conclude by giving examples of how data science is informing the design of a wide range of policy interventions—from affordable housing to job training programs—to expand opportunities.