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Over the past decade, Opportunity Insights (OI) has transformed the study of intergenerational mobility through innovative uses of administrative data, reshaping the public and scholarly understanding of the factors that affect children’s life prospects. One consistent finding in this literature is the strong association between family structure, especially single parenthood, and upward mobility, though it has received relatively little sustained attention.
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Populists on both the political left and right routinely claim that the middle class has been hollowed out. These claims, to the extent they are based on evidence, rely on a relative definition of the middle class, such that if income doubles for every family, the middle class does not grow. Using an absolute definition of the middle class, we find that the “core” middle class has shrunk, but only because more families have become upper-middle class over time.
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The Tax Relief for American Families and Workers Act of 2024 would expand the child tax credit by increasing the refundable credit, indexing the maximum benefit to inflation, raising the phase-in rate for families with multiple children, and allowing a one-year earnings lookback.
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Our improvements to Cass’s estimates indicate the cost of thriving rose by 10 weeks rather than 22. After accounting for the better quality of the goods and services he tracks, the increase was four weeks. The cost of thriving declines when we account for falling federal taxes or include all full-time workers. The after-tax cost of thriving for this broader group fell by 7.5 weeks. These improvements aside, we reject the COTI approach as inadequate for assessing changes in living standards.