This blog post contains insights from the World in Numbers: Social Mobility session that took place on January 23rd, 2025 with featured panellists: Stefanie Stantcheva (Professor of Political Economy and Founder, Social Economics Lab, Harvard University) and Amitabh Behar (Executive Director, Oxfam International).
Introduction: Social Mobility in Crisis
Social mobility, the ability of individuals to improve their socioeconomic status, regardless of their background, is what defines equitable societies. Yet persistent inequalities in wealth, education, and opportunity have eroded this foundational principle. Today in the U.S., 33% of children born in the bottom economic quintile will remain there as adults.
Globally, the disparities are stark. While billionaires have doubled their wealth over the past decade, 3.6 billion people (44% of the world’s population) live below the poverty line. These numbers highlight the urgent need for systemic change to restore mobility and equity worldwide.
Perceptions and Realities of Social Mobility
Perceived Mobility and Opportunity
Stefanie Stancheva’s work reveals that perceptions of mobility are as crucial as actual mobility. High perceived mobility—the belief that hard work and opportunity can lead to success—tends to lower societal tolerance for inequality. Yet, in reality, mobility varies significantly across regions. In the U.S., the belief in the "American Dream" persists despite the country having lower social mobility compared to Europe. The interplay of perception and reality matters. Poorer individuals often believe others are worse off than themselves, while wealthier people tend to overestimate the average wealth of others. These perceptions shape societal attitudes toward fairness, inequality, and policy preferences.
The Zero-Sum Mindset
A lack of social mobility ultimately fosters a zero-sum mindset which is the belief that one group’s gain comes at the expense of another. This perspective is particularly dangerous because it undermines the potential for collective progress. In a zero-sum framework, resources, opportunities, and benefits are seen as finite, fueling resentment, division, and competition rather than collaboration. Stefanie Stancheva’s research highlights that younger generations in developed economies, where economic stagnation is more pronounced, are increasingly adopting this mindset. As GDP growth slows and social mobility declines, people raised in low-mobility environments become more likely to see economic and social gains as a zero-sum game.
While it is true that some economic contexts, such as those involving finite or non-renewable resources may inherently appear zero-sum – innovation and equitable governance can still help create more positive-sum dynamics when resource scarcity is at play. For instance, circular economies and advancements in resource efficiency demonstrate how seemingly scarce resources can be managed collaboratively, creating positive-sum outcomes. Policies that promote equitable distribution and shared benefits can further mitigate competition and reduce mistrust.
In contrast, a positive-sum mindset, where collective action leads to shared benefits, fosters innovation and progress. Addressing the structural barriers that hinder social mobility—such as unequal access to education, wealth disparities, and systemic discrimination—will be critical in the coming decade for shifting perspectives and unlocking the potential for widespread societal advancement.
The Anatomy of Inequality
Wealth Inequalities
Over the past decade, billionaires have doubled their wealth, with four new billionaires emerging every week. As highlighted by Amitabh Behar, 60% of global wealth is unearned, deriving from inheritance, monopolies, or state connections. These factors stifle competition, suppress wages and continue to perpetuate cycles of inequality, as monopolies extract wealth for shareholders at the expense of broader economic growth.
Global Disparities
The flow of wealth between nations paints an alarming picture. For every $1 of aid flowing into developing countries, $4 is extracted, perpetuating a system where resources are drained from the Global South to the Global North.
National Inequalities
Within nations, social mobility remains deeply unequal. As indicated in Oxfam’s Power of Education Report, wealthier individuals have a 47% chance of attaining higher education, compared to just 2% for those from poorer demographics. Moreover, income levels are shaped predominantly by factors beyond individual control: 50% is determined by birthplace, 25% by parental wealth, and the remaining 25% by race, caste, and luck. These statistics highlight the structural barriers that inhibit upward mobility, reinforcing systemic inequalities that demand targeted interventions.
Pathways to a More Equitable Future
National Inequality Reduction
Targeted policies that focus on equitable access to education, healthcare, and progressive taxation are essential for reducing within-country disparities. For instance, countries like Finland and Denmark, which invest over 6% of GDP annually in public education, consistently rank among the highest in global social mobility indexes as highlighted in the World Economic Forum’s Social Mobility Report. Moreover, nations with robust social safety nets, such as Sweden, allocate significant portions of their budgets to universal healthcare and affordable childcare, fostering higher mobility rates by reducing the socioeconomic barriers faced by low-income families.
Ending the Wealth Drain from the South to the North
The wealth flow imbalance between the Global South and North is perpetuated by unfair trade agreements, monopolistic practices, and systemic global inequities. According to Oxfam’s Inequality Report, for every $1 in aid sent to developing countries, $4 is extracted through mechanisms like debt repayments, tax evasion by multinational corporations, and profit repatriation. Addressing this requires structural reforms in global governance. Fairtrade agreements, such as those championed by the United Nations Conference on Trade and Development, focus on reducing tariffs for Global South exports and curbing exploitative practices like resource monopolization. Strengthening anti-monopoly regulations, particularly for industries like mining and agriculture, is another vital step.
Fostering a Positive-Sum Mindset:
A positive-sum mindset—where progress for one group benefits all—can be fostered through community-driven initiatives and policies that promote inclusive growth. Social enterprises, such as India’s SEWA Cooperative Federation, empower marginalized women by providing skills training, access to markets, and microfinance, showcasing how collective prosperity can be achieved. Additionally, policies that incentivize collaborative innovation can create ripple effects across industries. Tax credits for companies investing in workforce upskilling or subsidies for adopting sustainable business practices are examples of how governments can encourage cooperation and shared benefits.
Conclusion: Building Bridges to Opportunity
The numbers tell a sobering story: inequality continues to shape global outcomes, stifling social mobility and deepening divides. However, as Stefanie Stancheva and Amitabh Behar illustrate, targeted policies, global collaboration, and a rethinking of wealth distribution can unlock pathways to greater equity.
To move forward, we must collectively reimagine governance, challenge entrenched systems and foster opportunities that allow everyone to thrive. The question remains: are we ready to embrace the changes necessary to build a world where social mobility is no longer the exception, but the norm?
Appendix of Resources
- Oxfam Power of Education Report
- Oxfam Inequality Report
- WEF Social Mobility Report.