Advancing Economic Mobility in Your Community
Cities have the power and authority to influence and impact the upward economic mobility of their residents through their day-to-day operations. This includes reviewing and changing internal policies to increase economic opportunity, creating programs that target community needs and build long-term financial strength and directing general budget spending that supports the advancement of upward mobility for all residents, especially for Black, Indigenous and people of color (BIPOC) communities.
Why Improving Economic Mobility in Your City is Essential
Advancing the upward economic mobility of city residents directly impacts the financial health and long-term viability of municipalities. Research has found that economically secure families with as little as $250 in savings are better able to weather the ebbs and flows of income drops and unexpected expenses (PDF). They are also less likely to rely on local services for housing support and cash assistance. Additionally, financially healthy adults and families are less likely to be evicted, miss a housing or utility payment, or receive public benefits. This matters to cities because economically secure individuals are more likely to provide revenue via sales, property ownership or income taxes that can provide more predictable municipal budgets.
Research has also shown that the economic mobility of individuals in the United States is lower than in other wealthy countries. Intergenerational economic mobility varies considerably across the U.S., with significant racial and gender differences. Moreover, even after controlling for factors such as education levels, a child’s ability to achieve upward economic mobility is affected by the neighborhood where they live (PDF).
When municipalities work to increase upward mobility, it can lead to benefits for residents and for cities. Residents can achieve increased income, educational attainment, better access to physical and mental health resources, a higher quality of life and the ability to pass on wealth and ensure stability to future generations. Cities benefit from increased revenue, greater public safety and stronger local economies.
Local Governments are Well-Positioned to Affect Change
All cities, regardless of size, play important roles in boosting residents’ economic mobility. Within these varied roles, there are promising policy and programmatic levers unique to municipalities that have the potential to move the needle on helping residents become more economically secure. Through interviews, focus groups and other connections with city leaders and staff, NLC has identified the following roles and policy and programmatic levers that are effective for cities.
Listener
Reach and engage through city communication vehicles. Use the power of city hall to convene residents and stakeholders.
Implementer
Create and fund new programs to meet local needs.
Community Partner
Call upon community organizations to spread city messages and gather information. Foster community-wide collaboration to streamline services
Model Employer
Improve wage and benefits packages for city employees. Embrace inclusive recruitment and hiring practices.
Funder
Make grants to community organizations and neighborhoods. Promote economic mobility through procurement.
Priority Setter
Incorporate economic mobility into strategic plans. Restructure local government to prioritize economic mobility and equity.
Policy Maker
Pass ordinances that increase economic security for residents.
Addressing One of the Largest Challenges of Our Time
Cities across the country are rising to the occasion to address the decline in economic mobility for low-income youth, families and BIPOC communities. For municipalities of any size, funding opportunities for this work can be inconsistent, but cities can take action and play an important role regardless by utilizing unique levers and roles. Economic mobility investments can utilize short-term funding, policy and systems changes, or programs to provide long-term impact that can drastically shift the trajectory for all residents.
Read on for a variety of resources designed to help local leaders advance upward economic mobility in their communities and to enable all residents to participate in a strong local economy, now and in the future.
Increasing Quality Employment for Residents, Part of a Brief Series
Raising Residents’ Wages, Part of a Brief Series
Building Wealth Through Equitable Municipal Procurement, Part of a Brief Series
Expanding Economic Mobility through the Municipal Workforce, Part of a Brief Series
How Cities Are Using Workforce Development to Advance Economic Mobility
- Michael Bartlett
- Patrick Hain
Increasing Opportunity: Economic Mobility in Rural Communities
- Justin Chu