Why assuming every generation should make more money than their parents’ is an increasingly outdated concept
This article was written by Salzburg Global Fellows Rhydhi Gupta, Zuki Hlwatika, Hyebin Bina Jeon, Ian Ryu, and Jenny Wood, all of whom attended the KFAS-Salzburg Global Leadership Initiative.
If the child of an investment banker becomes a teacher, have they failed in intergenerational mobility? According to the traditional financial or social metric - whereby a parent’s (usually the father’s) financial earnings or related social standing predicts those of their child (usually a son) - yes, they have. But should we view it that way?
While these financial and social measures of intergenerational mobility have validity as a simple metric of equality of opportunity over time, both attempts to look at the concept are bound up in toxic concepts that higher incomes and greater social status have inherent meaning. Moreover, viewing progress through an upward or downward trajectory requires winners and losers, which are defined by measures that do not reflect how many people and modern societies envisage a good life.
Ingrained in this way of thinking is an assumption that things can always be financially better. In the modern world, where climate change, demographic transition, and the rise of AI are all immediate threats, such assumptions do not drive us toward a more sustainable future. They can instead drive toxic behaviors that keep people competing for fewer and fewer resources while encouraging an unsympathetic and nihilistic worldview.
The time for simplistic economic measures is over. We must view intergenerational mobility as a multidimensional measure.
Expanding Dimensions: Intergenerational Mobility 2.0
Multidimensional intergenerational mobility, or Intergenerational Mobility 2.0, would no longer define intergenerational mobility by a simple up or down trajectory and instead better reflect the multifaceted nature of lives we actually experience. For example, the traditional view supposes that the child-teacher of the parent-banker is doing worse than their parent by virtue of earning a lower salary. Yet, this blunt metric says nothing of the quality of life the child experiences on their income. The child may find more purpose and meaning in their role as a teacher than the lower salary would reflect. In actuality, the child-teacher may have moved toward a better and more fulfilled life than their parent-banker.
Intergenerational Mobility 2.0 also better captures the pressures of modern life and increasing global uncertainty. While many people today may earn more than their parents on paper, it may not translate to time for recreation or fulfillment of their well-being or even human rights. A new multidimensional measure also enables a move beyond conventional gender roles, whereby the caring professions that are often dominated by women are lower paid and (on paper) worth less.
How we measure and compare nations can further entrench value judgments around what different people should and should not be striving for. For example, the Australian government recently published a "Measuring What Matters Statement", which moved the debate to assess progress against a wider range of measures based on a national conversation about what matters to modern Australians.
Evidently, income or economic indicators alone should not be employed as the yardstick from which intergenerational mobility is determined; rather, the use of multidimensional measures that tell us a more comprehensive story should be used.
But what new dimensions would offer a more holistic measure of Intergenerational Mobility 2.0? Below are six proposals we hope will spark further discussions on what is possible in a future where continuous economic growth and striving are no longer sustainable.
1. Basic Standard of Living
Economic indicators such as Gross Domestic Product (GDP), income, or interest rates on their own are not sufficient in capturing how people truly fare in their lives and whether they are better or worse off than previous generations. An analysis of one’s basic standard of living, comprising an array of indicators, should assist with determining the state of one’s well-being and, subsequently, intergenerational mobility.
The Organisation for Economic Co-operation and Development’s (OECD) Better Life Index employs a combination of useful indicators in determining people’s standards of living. For instance, the housing indicator speaks to the basic need of having shelter and a safe space; the life satisfaction indicator measures the extent to which people are happy with their lives in overall terms; and the community indicator assesses whether a person has a strong sense of community where they have a social circle and support structure. Other OECD indicators include income, jobs, education, environment, civic engagement, health, safety and work-life balance.
Additionally, the Human Development Index (HDI) was developed as a response to economic growth alone being insufficient in measuring a country’s development. The United Nations Development Programme explains HDI as an observation of living a long and healthy life, being knowledgeable, and having a decent standard of living; combined, these tell us much more about basic standard of living than just income.
2. Healthy Life Expectancy
The importance of adopting more multifaceted metrics is also increasing within the realm of health. While traditional measures such as life expectancy offer a quantitative perspective on health, the emergence of healthy life expectancy (HLE) considers the quality of health.
HLE is a crucial indicator alongside life expectancy: It estimates the average years individuals can anticipate living in good health, calculating both mortality and morbidity elements. This metric encompasses various health parameters such as chronic illnesses, disability rates, mental well-being, and overall quality of life. Essentially, healthy life expectancy seeks to encapsulate not merely longevity but quality of life, factoring in the importance of good health and well-being across the lifespan.
According to the World Health Organization, life expectancy has globally increased by over six years between 2000 and 2019, rising from 66.8 years to 73.4 years. Healthy life expectancy, however, has only risen from 58.3 in 2000 to 63.7 in 2019. This indicates the increase in HLE has not kept pace with the corresponding rise in life expectancy, suggesting that, despite living 6.6 years longer, people can expect to spend almost a decade of their old age suffering from disability and illness. This finding challenges the conventional assumption that the new generation’s privileges of medical advances and material affluence do not necessarily bring us healthier lives than previous generations.
3. Rights to Rest and Play
Our physical and mental health outcomes also depend on the quality of lives we lead. On average, we spend one-third of our lives working and earning a living. Article 24 of the Universal Declaration of Human Rights states that everyone has the right to rest and leisure, including reasonable limitation of working hours and periodic holidays with pay.
With the advent of the gig economy and the impending fifth industrial revolution, it is pertinent that each generation evaluates gainful employment and wealth creation against metrics such as fair wages, decent working hours, employment security, work-life balance, maternity at work, safety, social security, and equity.
4. Political Empowerment
Political change also contributes to improvements in quality of life. Assessing democratic values, civil liberties, gender equality, and voting equality across generations can present a further nuanced picture of intergenerational mobility. Across 47 countries with consistent data, only 20% of adult citizens had the right to vote in 1850, with the electorate comprised mainly of a narrow elite of propertied and, almost exclusively, white men. Today, that percentage stands at 100%. However, whether individuals genuinely feel they influence political outcomes - relative to parties in government, big business, banks, and industry - remains a question worth asking.
5. Access to Opportunity
Access to opportunity measures whether an individual is given a fair chance to be successful in life. Equitable access to opportunities for all members of society, regardless of their background or circumstances, is essential to unlock the potential of every individual.
Measuring the access to opportunity has been a long-standing effort in social science. The World Bank introduced the Human Opportunity Index in 2008 as a systematic measure of the inequality of opportunities in Latin America and the Caribbean. Meanwhile, Opportunity Nation and Measure of America created the annual Opportunity Index to analyze community conditions that impact opportunity within the USA. By leveraging these quantitative measures, policymakers can intervene to level the playing field and equalize opportunity earlier, rather than later, in life.
Access to opportunity encompasses access to a diverse set of resources for human development including electricity, quality education, employment, housing, and social networks. By dismantling barriers to opportunity and investing in inclusive policies, societies can unlock the potential of every individual, thus fostering intergenerational progress and prosperity.
6. Meaning and Purpose
A core psychological drive of human beings is to find meaning and purpose in our existence. This has traditionally come for many through religious observance and community rituals. However, there is increasing discourse, particularly in the Global North, that we are in the midst of crisis.
Many are now questioning whether their jobs bring true value to the world, and whether they are able to meet their core needs in a world full of uncertainty and distraction. For example, a recent UK study showed that there is not only significant economic inequality in the country, but an even wider inequality when well-being is also factored into earnings.
While the concept of meaning and purpose is philosophically complex and often personal, there are relatively simple ways to measure it. For example, the Personal Wellbeing Measure from the UK’s Office for National Statistics asks individuals four simple questions to measure life satisfaction, worthwhile, happiness, and anxiety.
Measuring personal well-being can therefore add depth to our understanding of intergenerational mobility, enabling us to better understand the extent to which income can truly predict happiness. Moreover, measuring well-being allows for other factors such as happy relationships, community, and family life to be recognized.
Dialogue for a Healthier Future?
Mental health and loneliness crises abound, as today’s world seems ever-more chaotic and stressful for individuals. Messaging that people will not or cannot expect to do as well as their parents financially, materially, or spiritually creates a sense of doom and ingrains a winners-versus-losers mentality that further erodes well-being.
By exploring alternative ways to think about intergenerational mobility, we seek to expand the conversation on what future progress could look like within and beyond individual countries. National governments should not be stuck relying on the toxic traditional concept of measuring economic indicators only. They should instead present promising and sustainable visions for our future societies.
Imagine a world where nations compete to encourage and provide well-rounded and meaningful lives for their populations, and where people feel supported, no matter their income, to participate in society and community. A world where people and systems that build the ability to deal with change, uncertainty, and adapt to a changing climate are celebrated and these tools are shared to drive progress. A world where people who find well-being and purpose in unpaid work or roles are still able to have a decent standard of living, and are recognized for their contributions no matter their gender.
We believe that a more complex view of intergenerational mobility can help bring us closer to a more equitable future, and we invite further views on how we can progress towards this more meaningful, multidimensional measure.
This article featured in our digital publication, which includes more coverage from the KFAS-Salzburg Global Leadership Initiative program on "Uncertain Futures and Connections Reimagined: Connecting Generations".
The KFAS-Salzburg Global Leadership Initiative is a multi-year program that annually brings together an international, intergenerational, and interdisciplinary network of Korean and global thought leaders to create new connections and tackle global challenges.
