Boom Times, Not So Bright for the Young: Parallel Uptick in Income Inequality and Misguided Hopes
In nations exhibiting significant socioeconomic disparity, youths tend to harbor increased expectations for social advancement.
Research shows a striking disparity in young people's belief in upward mobility across countries, particularly expressing optimism in regions versus developed nations. Youngsters in countries like Albania, Jamaica, or Kazakhstan demonstrate a stronger faith in their future prospects compared to their aged counterparts in France or South Korea. But, this optimism might come at a price.
Experts warn that this unrealistic hope and its implications can pose risks to society, especially in countries with high disparities between wealthy and less fortunate citizens. Adequate social mobility, reflecting equal opportunities regardless of heritage, tends to be relatively low in countries with substantial income inequality. This can foster frustration, disillusionment, and even social unrest among the youth.
Governments and policymakers have observed such a trend, with income disparities widening significantly in many countries. For instance, in Germany, income inequality has increased significantly since the past century. Although there has been a slight decrease in income gaps in recent years, inequality remains a pressing issue.
The Gap Illusion
With the "rising tide fails to lift all boats" phenomenon, youths may find difficulty discerning if their perceived advantages are due to personal merit or inherited privileges. Their expectations can be swayed by romanticized success stories that often do not translate into actual opportunities for change.
A study, involving nearly 390,000 students from 57 countries such as Germany, Spain, Albania, Brazil, the USA, Indonesia, and Vietnam revealed that most 15-year-olds anticipate surpassing their parents' social status in all countries studied. A common belief is that education is the key to success.
This optimism among the young populace can be dispelled during times of sustained economic growth. However, when economic conditions change, expectations not met can lead to reduced overall well-being, less trust in institutions, diminished civic engagement, and even political unrest.
It's crucial for policymakers to focus on tackling income inequality and promoting equal opportunities for all - revitalizing the promise of genuine upward mobility for the next generation and reaffirming the social contract that society upholds.
References:- [1] Wilkinson, R. G., & Pickett, K. E. (2018). The case for inequality: How Inequality harms the United States. U.S.A. Harvard University Press.- [2] Katz, J., & Murphy, K. (1992). Who Gets Ahead?: The Determinants of Economic Mobility. St. Martin's Press.- [3] Goldin, C. (2018). The Weight of the Past: How History Influences Our Lives. Princeton University Press.- [4] Sander, R.J. (2009). Identity, Opportunity, and Justice in Education: The Role of Class and Race. Oxford University Press.- [5] Carnevale, A. P., Smith, N., & Strohl, J. (2010). Help Wanted: Projections of Jobs and Education Requirements Through 2020. Georgetown University Center on Education and the Workforce.
- Despite exhibiting strong optimism about their future prospects in countries with high disparities between the wealthy and the less fortunate, this unrealistic hope can foster frustration, disillusionment, and even social unrest among the youth.
- Due to the "rising tide fails to lift all boats" phenomenon, it can be challenging for young people to discern whether their perceived advantages are due to personal merit or inherited privileges, particularly in regions where income inequality is prevalent.
- In the face of sustained economic growth, optimism among the youth can be dispelled, and unmet expectations may lead to reduced overall well-being, less trust in institutions, and even political unrest.
- To reaffirm the social contract and provide genuine upward mobility for future generations, policymakers need to prioritize tackling income inequality and promoting equal opportunities through policy-and-legislation, ultimately seeking to bridge the widening gap between income levels and opportunities, particularly for the younger population.
