Education is Key to Unlocking the American Dream, But Not the Only One, New Study Finds

– Only 30 percent of those who graduate high school will go on to graduate college?

– There’s a growing “education gap” in America… and it favors women?

– If your household income is $10,000-$20,000, odds are you own your own home?

These are just some of the surprising facts highlighted in Pathways to Economic Mobility: Key Indicators. The report is the latest in a series from the Economic Mobility Project sponsored by The Pew Charitable Trusts. Penned by researchers at The Heritage Foundation, Pathways builds on the
previous studies to identify those factors that play the most critical roles in determining the likelihood of someone climbing — or descending — the ladder of financial success.

Education emerged as the single most important variable. “Unlike a generation ago, a college degree is key to upward mobility,” said Stuart Butler, Heritage vice president of domestic policy studies and lead author of the report. “If you don’t graduate college, odds are you can say goodbye to the American Dream.”

However, Butler noted, “Educational success itself can be crucially influenced by numerous factors ranging from home environment and health to community values.”

Other findings from the report include:

– Marriage matters. Children raised by two married parents are much less likely to live in poverty, regardless of race.

– Hanging out with the right crowd. Relationships formed in school can heavily influence a child’s attitude toward education, values, and other traits critical to success in school and the workplace. Negative influences, such as gang associations or contempt for academic success, are more prevalent in inner city neighborhoods and help explain why many African-Americans have a tough time getting a good start up the ladder.

– Keeping it “in the family.” One in five American households has received a significant gift (cash and/or other assets) from family members. The average value of these wealth transfers: $256,900.

The complete report is available online at http://www.economicmobility.org.

SOURCE The Heritage Foundation / PRNewswire