Richer childhood friends boost future income, Facebook data shows

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The analysis showed that children from poorer homes are likely to earn more later in life if they grow up in areas where they can become friends with wealthier kids.

It has long been believed that having rich friends can help children rise up out of poverty, but previous research has had small sample sizes or limited data, according to two studies published in the journalSo a team of US-based researchers turned to Facebook, the world’s largest social database, with its nearly three billion users offering unprecedented scale and precision to examine the issue.

They then measured how much richer and poorer people interacted with each other and created the term “economic connectedness” to represent the share of a person's friends who were above or below the average socio-economic level. The first paper showed that economic connectedness “is one of the strongest predictors of economic mobility that anyone has identified to date”, Chetty said.

Around half of social disconnection between the rich and poor was due to lack of exposure to each other, the study found.The findings showed that US policies aimed at reducing economic segregation between schools and regions were important but “not enough”, he added. The data on exposure and friending bias was published on socialcapital.org on Monday, with researchers hoping it will prompt authorities across the United States to act.

 

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