In recent decades, social mobility has stalled across advanced economies. The UK picture is more mixed – but recent OECD research found that richer families are more likely to stay rich and that the slow pace of mobility means it would take five generations for a poor family to reach average income. Looking across advanced economies, what approaches have been successful in supporting people on lower incomes to move up the ladder? Where is the UK doing well at in terms of fostering social mobility, where is it struggling, and what lessons can we learn from abroad? At an event at its Westminster headquarters, the Resolution Foundation welcomed Mark Pearson, the OECD’s Deputy Director of Employment, Labour and Social Affairs, who presented new analysis on social mobility trends across advanced economies, with particular reference to the UK. He was joined by a panel of experts, before taking part in an audience Q&A. Speakers: Mark Pearson – Deputy Director of Employment, Labour and Social Affairs, OECD Jonathan Slater – Permanent Secretary for the Department for Education Lindsey Macmillan – Reader in Economics, UCL Lucy Powell - MP for Manchester Central David Willetts – Executive Chair of the Resolution Foundation (Chair)

1. From treadmills to stairwells
Social mobility across advanced economies
1
Mark Pearson – Deputy Director of Employment, Labour and Social Affairs, OECD
Lindsey Macmillan – Reader in Economics, UCL
Jonathan Slater – Permanent Secretary for the Department for Education
Lucy Powell – MP for Manchester Central
David Willetts – Executive Chair of the Resolution Foundation (Chair)
September 2018
@resfoundation #socialmobility
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2. How to Promote Social Mobility
A Broken Social Elevator?
Mark Pearson
OECD, Deputy Director for Employment, Labour and Social Affairs
Resolution Foundation, 19 September 2018

3. It takes about 5 generations for the descendants
of a low-income family to reach the average
income
2
3 3 3
4 4 4 4 4 4 4 4
5 5 5 5 5 5 5 5
6 6
7
4.5
6
7 7
9 9
11
6
0
2
4
6
8
10
12
14
0
2
4
6
8
10
12
14
Number of generations it would take for descendants of families
in the bottom 10% to reach the mean income in society

4. 4
More inequality does not mean
more social mobility
OECD24
DNK
NOR
FIN
SWE ESPNZL
GRC
CAN
BEL
AUS
JPN
PRTNLD
IRL
KOR USA
ITA
GBR
CHEAUT
FRA CHL
DEU
HUN
ARG
INDCHN
BRA
ZAF
COL
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.1 0.2 0.3 0.4 0.5 0.6 0.7
Earnings mobility across generations today
Inequality 25 years ago (Gini coefficient)
Moremobility
More inequality

5. The UK does not fare particularly well
in terms of social mobility
DenmarkHungary OECD
United
Kingdom
Earnings mobility
Education mobility
KoreaPortugal OECD
United
Kingdom
Minimum Maximum
Iceland MexicoOECD
United
Kingdom
Income inequality
Compared to the OECD average, the United Kingdom has somewhat
higher income inequality, somewhat lower earnings mobility and
much lower educational mobility
Dimensions of income inequality and
intergenerational social mobility

6. 0
10
20
30
40
50
60 %
Father in the bottom earnings quartile
Father in the top earnings quartile
Sticky floors at the bottom,
sticky ceilings at the top
Children from disadvantaged families struggle
to move up the ladder
Share of people in the top earnings quartile, by father’s earnings position

7. Policies can make our societies more mobile
and promote inclusive growth
Countries that spent more on public education in the past
tend to have higher educational mobility today
BEL
CZE
DNK
FIN
FRA
DEU
HUN
IRL
NOR
PRT
SVK ESP
SWE
GBR
USA
OECD15
0.3
0.4
0.5
0.6
0.7
0.8
3 3.5 4 4.5 5 5.5 6 6.5 7 7.5
Public expenditure on education as a percentage of the GDP in 1995
Intergenerational
educational mobility

8. Policies can make our societies more mobile
and promote inclusive growth
Evidence from across OECD countries shows that the right
educational, labour market and social policies can improve
social mobility
Policy options for the UK could include
Investing more into workforce upskilling, in particular lifelong learning
Tax and regulatory reform of non-standard forms of employment
Reduce high housing costs by relaxing land use regulations

9. Contact
mark.pearson@oecd.org
http://oe.cd/social-mobility-
2018
@OECD_Social
http://oe.cd/cope
Thank you for your attention!

10. From treadmills to stairwells
Social mobility across advanced economies
10
Mark Pearson – Deputy Director of Employment, Labour and Social Affairs, OECD
Lindsey Macmillan – Reader in Economics, UCL
Jonathan Slater – Permanent Secretary for the Department for Education
Lucy Powell – MP for Manchester Central
David Willetts – Executive Chair of the Resolution Foundation (Chair)
September 2018
@resfoundation #socialmobility
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