Today, we’re announcing the results of our Social Capital research partnership in the United Kingdom. In collaboration with the Behavioural Insights Team, Royal Society of Arts, Stripe Partners, and Neighbourly Lab, we are publishing a new research paper and visualization, and an accompanying dataset, which found that children who grow up in areas where people from different economic backgrounds become friends experience a significant earnings increase in adulthood.
According to the study, children from low-income families raised in areas with many cross-class friendships in the UK earn 38% more as adults than those from similar backgrounds who lived in areas with fewer such friendships. This translates to approximately £5,100 per year more in earnings on average.
The financial advantage remains strong, even after accounting for other area characteristics. After median income, economic connectedness is the most important independent factor in predicting upward mobility within an area even when controlling for income, education and health outcomes.
The research team also found significant differences in economic connectedness by region. Cross-class friendships are relatively common in South East England, particularly in London and its surroundings. By contrast, post-industrial regions such as northern England, South Wales, the Scottish Central Belt and Northern Ireland show much lower rates of economic connectedness.
Cross-class friendships across the United Kingdom
Examining where cross-class connections are formed, the researchers found that hobby groups, including sports teams such as five-a-sides, can be a rich place to forge friendships across groups.
We are sharing the research paper, visualization, and dataset openly such that additional researchers can leverage these results for their work and to inform policies that increase social capital and economic opportunity in the UK.
