I would say basically the commonplace observation that kids aren't going to earn as much as their parents is now is a coin flip at this point. Are you going to do better than your parents? It's a 50-50 chance, whereas if you were born in the 1940s or 1950s, you had more than a 90 percent chance you were going to do better than your parents. So basically almost a guarantee for most kids that you were going to achieve the American Dream of doing better than your parents did. Today, that's certainly no longer the case.
Raj ChettyEvery extra year you spend in a better environment makes you more likely to go to college, less likely to have a teenage pregnancy, makes you earn more as an adult, makes you more likely to have a stable family situation, be married, for instance, when you're an adult.
Raj Chetty