Social mobility

Interest in how the economic circumstances of younger generations compare to those who are older shows no signs of slowing. Politicians on all sides of the debate express interest, or concern, in how trends in UK economy and society are affecting those who are currently in their 20s and 30s in particular. But what does the latest data – which for the first time now allows analysis of those born in the late 1980s – say?

The richest members of our society get a lot of attention. Much of the public conversation about economic inequality is concerned with, loosely, the top 1%, how different they are from the rest, how they got to where they are, and what – if anything – policy should do about it. This briefing note uses data from HMRC’s income tax records to document some key facts about the highest-income people in the country.

In this short observation, we set out new research about the recent changes to household incomes, and who has been most affected by the recent slowdown in household income growth.

Universities are a key determinant of the earnings power of graduates. But when considering the role universities play in determining the living standards and socially mobility of graduates, it is vital to incorporate the wider impacts of higher education on both other sources of income and non-monetary outcomes.

Reducing socio-economic gaps in education outcomes has been at the heart of government strategy to raise social mobility for many years. Achieving higher educational qualifications enables individuals to earn more, on average, so if those from poorer backgrounds are less likely to attain these qualifications than those from richer backgrounds, then the socio-economic circumstances of parents and children will continue to be inextricably linked.

Today, the Secretary of State for Education is due to outline proposals that would allow an expansion of grammar schools across England. This could represent a significant shift in the education system in England. As ever there would be costs and benefits to such a change. It does appear that those who attend grammar schools do, on average, somewhat better than similar children in the comprehensive system. On the other hand, those in selective areas who don’t get into grammar schools do worse than they would in a comprehensive system. The real question for education is whether we can have the benefits without the costs. Do London schools point the way forward?