Upward economic mobility refers to the process by which an individual’s economic condition improves. This can occur either within their adult lifetime (intragenerational mobility) or from one generation to the next (intergenerational mobility). Economic mobility can also be classified as absolute, which means improvement in absolute terms, or relative, which involves movement in rank or reduction of inequality. Understanding these dynamics is crucial for developing effective strategies to enhance economic mobility.
A Blueprint for Economic Mobility
After years of recession, the economy shows signs of recovery and growth. An unprecedented amount of federal recovery and infrastructure funding- over $85 billion- is committed. If seized correctly, these funds can be leveraged to propel upward economic mobility for the majority of people living in Puerto Rico, catalyzing sustainable economic development and providing ample opportunities for making gains in all aspects of our society.
Platform for Social Impact developed a report that lays out the importance of promoting upward economic mobility, a research-informed framework for achieving it, and preliminary opportunities for action for the different actors that have a stake in Puerto Rico addressing economic mobility—including businesses, government, and philanthropy, amongst others.
Platform for Social Impact developed a report that lays out the importance of promoting upward economic mobility, a research-informed framework for achieving it, and preliminary opportunities for action for the different actors that have a stake in Puerto Rico addressing economic mobility—including businesses, government, and philanthropy, amongst others.
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Defining Economic Mobility
Given Puerto Rico’s past economic, current, and future demographic challenges, upward economic mobility will be critical to the archipelago’s growth, prosperity, and sustainability.
In addition to high levels of poverty and economic precarity, Puerto Rico has one of the most rapidly aging populations in the world. Declining fertility and mortality rates and high rates of outmigration amongst working-age adults drive rapid aging.
It is crucial to focus on providing economic opportunities for young adults and families, who have traditionally migrated at higher rates. Additionally, in 2023 Puerto Rico registered the lowest number of births since 1888.
Who Would Benefit Most from Upward Economic Mobility Strategies?
Upward economic mobility strategies would immediately benefit around 1.62 million individuals in Puerto Rico who live in or near poverty. Key groups include:
- Children and their families, particularly those in female-headed households.
- Working-age adults above 45 years old who face employment challenges.
- Opportunity youth who are not in employment, education, or training.
- Families residing in the central and southern regions of the island.
Targeting these groups with effective mobility strategies can significantly impact their lives and contribute to the overall economic health of Puerto Rico.
The Opportunity
Puerto Rico is currently experiencing a period of economic growth, as evidenced by historically low unemployment rates, increased labor force participation, a steadily rising Economic Activity Index, more business creation, and job additions. These positive indicators present a unique opportunity for strategic actions that can enhance upward economic mobility and ensure sustainable development. By seizing this opportunity, Puerto Rico can build a more prosperous future for all its residents.