Economic mobility: A tale of two cities
Writer: Eleana Teran
June 2024 — Charlotte and Atlanta, two of the major cities in the Southeastern United States, are known for their rapid growth and vibrant communities. However, according to a recent study, they tell very different stories when it comes to economic mobility, particularly for low-income, Black families.
The study, developed by economist Raj Chetty and a team at Harvard University-based nonprofit Opportunity Insights, examined data on 57 million children born between 1978 and 1992 and analyzed their income as adults at 27 years old, revealing how youths’ chances of climbing the economic ladder vary dramatically based on their upbringing. Historical factors such as slavery and redlining have left a lasting impact, but recent trends show that opportunities can shift more quickly than expected.
For those born in the late 1970s, both Charlotte and Atlanta showed low levels of economic mobility for Black children from low-income families. Less than two decades later, for those born in the early 1990s, Charlotte’s situation improved markedly. The city nearly reached the national average for mobility thanks to better outcomes for low-income Black residents and stable conditions for low-income white residents.
According to the research, the key to Charlotte’s success lies in its changing social environment. The study found that areas with higher parental employment rates and strong community interactions saw significant improvements in children’s economic outcomes, highlighting the importance of a supportive community in fostering equitable growth.
An example is Novant Health’s Upward Mobility RN Educational Assistance Program, which supports internal advancement and improves the financial well-being of staff, particularly those living in underserved areas. TowneBank committed $500,000 to the program in 2023, with president Ted Wolfe telling Invest:, “upward mobility is a major focus for us.”
A decade ago, Charlotte was ranked 50th out of the 50 largest metropolitan areas for upward mobility, according to an often-referenced research report. Local leaders used this ranking as a call to action and the Charlotte Opportunity Initiative was launched in collaboration with community leaders to drive data-driven systems change. The initiative focused on several key areas to improve economic mobility, including investing in the health and education of low-income children, deconcentrating poverty and decreasing segregation, and increasing access to higher education. Efforts such as expanding access to high-quality preschool and ensuring students have skilled teachers and sufficient educational support have been prioritized.
Recent data reflects significant progress. Charlotte moved up to No. 38 in Chetty’s most recent upward mobility ranking. Civic and corporate leaders have made substantial commitments to continue to improve economic conditions. Mecklenburg County has committed to creating universal pre-K, and the city has passed a series of bonds for affordable housing efforts.
In contrast, Atlanta’s mobility rate has remained low over the years for both Black and white children from low-income families. Despite its reputation as a hub of Black economic progress, Atlanta continues to struggle with income inequality. The Atlanta Wealth Building Initiative (AWBI) reports that white households in the city have 46 times more wealth than Black households on average, with over a third of them having zero or negative net worth.
Education plays a crucial role in economic mobility, yet disparities in school funding further entrench inequality. AWBI’s report suggests that systemic issues, such as underfunded public schools and persistent economic disparities, contribute to Atlanta’s stagnation. In line with these findings, a report released earlier this year by the Albert Shanker Institute, the University of Miami, and Rutgers highlighted the inadequacy and unfairness of state school finance systems. It found that Black students are significantly more likely to attend underfunded schools, perpetuating the achievement gap. These disparities create environments that limit the potential for upward mobility among Black children.
Community and policy solutions are needed for change to be made. Charlotte’s improvements show that targeted efforts make a substantial difference. In Atlanta, the AWBI report outlines several policy recommendations to build Black wealth and improve economic outcomes. These include enforcing the Community Reinvestment Act, addressing predatory lending, and ensuring better funding for Black-owned businesses.
In an interview with Focus:, Melvin Coleman, president of the Atlanta Black Chambers, shared the challenges that minority-owned businesses face. “Black-owned businesses in the region primarily face challenges in accessing capital and networks. These resources are crucial for growth and sustainability (…) The state has a poor record of diversity among suppliers and vendors, and we’ve been advocating for change. After several meetings with the governor and persistent efforts, we contributed to the enactment of this legislation. This new law aims to improve the dismal rates of minority opportunities with the state’s multi-billion-dollar budget,” he said.
In a move to support minority-owned businesses, Mayor Andre Dickes recently appointed David Brand as an adviser. In this role, he will help integrate minority businesses into major development projects like Centennial Yards and affordable housing initiatives. This step aims to ensure that Atlanta’s growth benefits all segments of its population.
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