In recent months we have discussed a very interesting piece of research with many of our clients: THE FADING AMERICAN DREAM: TRENDS IN ABSOLUTE INCOME MOBILITY SINCE 1940

The research team is led by @Raj Chetty, professor at Stanford. For us, a major takeaway is that the percentage of children earning more than their parents has been dropping since 1940ies. Children born in the 1940ies have over 90% chance to earn more than their parents. Children born in the late 1980ies have only about 50% chance to earn more than their parents.

This underlying trend has implications for many of the markets and companies we analyze.

The full paper is available here: http://www.equality-of-opportunity.org/papers/abs_mobility_paper.pdf