Markets

Insider Trading

Hedge Funds

Retirement

Opinion

15 Countries with Highest Economic Mobility in the World

In this article, we will look at the 15 countries with the highest economic mobility in the world. We will also shed light on social mobility efforts of some companies. If you want to skip our detailed analysis, head straight to the 5 Countries With the Highest Economic Mobility in the World.

There are certain aspects of life that are beyond human control. When, where, and to whom you are born, is one such example. The innate stratification of classes within this world is yet another reality of life that determines to some extent most people’s journey on earth. However, we build our lives on the premise that not everything is predestined and hard work and dedication can play a significant role in goal achievement. It is this drive then that propels people to continuously improve themselves, whether it be to move up the socioeconomic ladder or some other loftier objective.

Economic mobility can be defined as the ability of people to upgrade their economic status over time. The concept of inter-generational move to a higher income bracket is especially relevant here. Nevertheless, the question that demands further clarification is that, can simply a desire for elevation to an upper class be enough? There are numerous other factors that must be accounted for before this objective is accomplished, thereby, rendering it with complexities that the world is still unraveling. Globally, people have been seen tethered to their parent’s status and we find developed countries with higher economic mobility as compared to developing, low-income nations. Some of the countries found at the lower end of social mobility spectrum include Cote d’Ivoire, Cameroon, Pakistan and Bangladesh.

Furthermore, while richer economies are associated with higher economic mobility, this is not set in stone. Certain welfare states like Sweden, Norway, and Denmark etc. provide their citizens with many amenities of life with little or no cost as well as equal opportunities in education. They have low-income inequality and therefore, are among countries with high economic mobility. Interestingly, the United States — a welfare state with an impressive economy — has low social mobility as compared to other developed countries. Raj Chetty’s probing research in understanding low economic mobility for the US brings to the forefront the fact that there is much geographical dispersion within the country.

This was found to be especially true for children from poor households. The government, however, is aware of the need for constant efforts for uplifting the socioeconomic status of their people. The DollarWise Economic Mobility Campaign has distributed grants for economic and health well-being to their cities for a long time and continues to do so. It has also been ascertained that some factors like education, household structure, and savings can have an impact on economic mobility of  the Americans.

Humanity is grounded in the idea of equity between people and though the efforts for better social mobility definitely satisfies this condition, there are multifarious economic benefits that can be accrued as well. The World Economic Forum stipulates that a 10-point increase in the Global Social Mobility index of countries could lead to a potential $514 billion increase in global GDP.

Is Socioeconomic development a purely government-level agenda?

Given the stress on economic and social mobility development, many companies are also playing their role, apart from the government. This includes big companies like Ford Motor Company (NYSE: F), Microsoft Corporation (NASDAQ: MSFT), IBM (NYSE: IBM), and Amazon.com Inc. (NASDAQ: AMZN).

Ford Motor Company (NYSE: F), has established Ford Motor Company Fund that collaborates with non-profit firms to help disadvantaged people in various communities. For example, the Ford Resource and Engagement Center in Craiova, has only recently accepted 8 new entrepreneurship programs. These are supposed to provide employment opportunities for young people. Ford Motor Company (NYSE: F) has also used the fund to invest $5 million in transportation for Detroit and other US cities. The aim is to ensure transportation for people who lack the facility, thereby, positively impacting their economic opportunities.

Microsoft Corporation (NASDAQ: MSFT) and IBM (NYSE: IBM) have been known to spend millions in the education system. One of IBM’s (NYSE: IBM) program, called SkillsBuild, is a free education program aimed at tech-low communities. This would allow them a chance to learn and develop technological skills and thus, help land better jobs. Microsoft Corporation’s (NASDAQ: MSFT) YouthSpark Program is also a praiseworthy effort for building educational and career possibilities for children around the world.

Amazon.com Inc. (NASDAQ: AMZN) is also not behind other companies in promoting economic mobility. Chosen as one of the top 75 UK employers for the Social Mobility Employer Index 2023, they provide ample evidence of their serious attitude towards fostering an equitable and progressive environment. 85% success rate of Amazon.com Inc. (NASDAQ: AMZN) apprenticeship program as well as The JOBS Project and Career Choice are some of the examples that they can boast.

15 Countries With Highest Economic Mobility In The World

Methodology

To list the countries with the highest economic mobility in the world, we have taken two different metrics. Firstly, we used our list of 15 countries with the highest social mobility in the world. Secondly, we used the latest Heritage Foundation Economic Freedom Index, 2023. The idea is that easier access to economic opportunities would allow people to attain a better living standard, thereby, allowing them to move up the ladder.

We then took the rankings of each country from both these lists and averaged them and then ranked our final list based on those average rankings. The list is presented in descending order.

Please note that in the case of similar average ranks, a country with a higher social mobility index ranking was placed higher.

Note: The US’s huge levels of income inequality prevented it from making it to the list. However, apart from that, the country is known for robust economic infrastructure and there are few regulatory obstacles to entrepreneurship.

By the way, Insider Monkey is an investing website that uses a consensus approach to identify the best stock picks of more than 900 hedge funds investing in US stocks. The website tracks the movement of corporate insiders and hedge funds. Our top 10 consensus stock picks of hedge funds outperformed the S&P 500 stock index by more than 140 percentage points over the last 10 years (see the details here). So, if you are looking for the best stock picks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.

Here is a list of the countries with the highest social mobility in the world.

15. Belgium

Social Mobility: 10

Economic Freedom Index: 43

Average Rank: 26.5 

The Belgium government, for long, has adopted a model that aims at redistribution and timeless unemployment benefits strategy. What is an even more dedicated effort on their part for ensuring well-being of people at all times, is the indexation wages and pensions with inflation. In fact, the government has recently enacted reforms to enable pensioners to life a sustainable lifestyle. In addition, their excellent healthcare system as well as the early retirement option, are both indicative of the government’s desire to facilitate a prosperous lifestyle. Such measures are bound to have a positive impact in inter-generational economic mobility as well as social mobility. Their free open market policies encourage international trade and investment, thereby, provide opportunities for growth. Thus, it is no wonder that Belgium is one of the countries with the highest economic mobility in the world.

14. Austria

Social Mobility: 9

Economic Freedom Index: 23

Average Rank: 16 

While Austria has fallen short in certain aspects of social mobility scale, as compared to other OECD countries, their overall performance still earns them a place on the list of countries with the highest social as well as economic mobility in the world. They have low income inequality. Their early childhood education rate has been on the rise and they also provide targeted support for children struggling in education — an established indicator for economic mobility. Moreover, their tax and benefit system is strong, cushioning people against sudden income shocks. Recent “long-term care” plan, provides further evidence of their commitment to ensuring a prosperous life for their people. On top of this, their attitude towards maintaining rule of law and transparent as well as competitive business environment, has also brought them to the 23rd place in the economic freedom index. Therefore, we find them among the 15 countries with the highest economic mobility in the world.

13. Canada

Social Mobility rank: 13

Economic Freedom Index rank: 16

Average Rank: 14.5

Canadian society is one of the most socially mobile in the world, both within and across generations.  In fact, they are twice more socially mobile than the US. They are also ahead of United Kingdom. Research over the years have established that a child’s future in Canada is not linked to the financial status of their parents. 35% of their citizens have achieved a higher strata than their parents, depicting a clear trend towards economic mobility. Furthermore, strong rule of law, supporting environment for property rights, and proper implementation of commercial code, sustains a free economic situation in the country. Combined, these factors make Canada one of the countries with the highest economic mobility in the world.

12. Australia

Social Mobility rank: 11

Economic Freedom Index rank: 13

Average Rank: 12

While Australians have been identified with a fairly higher chance of inter-generational economic mobility as compared to other countries, the Treasury researchers are pessimistic about the future. Children born in the bottom fifth of the Australian households, have a 12.3% chance of moving up to the top five, in terms of income. However, this is still quoted as a 60% higher probability than that found in the US. Findings of a Treasury research report pointed to strong labor markets as a potential driver of economic mobility. Queensland and Western Australia were seen to depict this trend in the wake of the boom experienced by the mining industry. The economic freedom index also places Australia at a good place in the world ranking. Therefore, our average considers the country as one of the countries with the highest economic mobility.

11. Iceland

Social Mobility rank: 5

Economic Freedom Index rank: 19

Average Rank: 12

Iceland is commended for various policies that center on equality and human rights protection. Their family policy, low gender disparity, low housing cost, technological reach, and internet freedom, are among the few that help label them as a highly progressive society. Combine this with an open-market system that fosters trade and investment, and you get one of the countries with the highest economic mobility in the world.

10. Germany

Social Mobility rank: 8

Economic Freedom Index rank: 14

Average Rank: 11

According to OECD, Germany has lower social mobility than other developed countries. Children of high-income households have a 50% chance of graduating high school, as compared to children born in low-income households. Researchers have also found that while mobility has been constant for the recent birth cohorts, there is substantial variation across regions within the country. The world ranking for Economic freedom Index has the country on the 14th place. They have an open-market policy and along with law and order supremacy, they enjoy a robust economy. Thus, these factors coupled together, we find Germany at the 10th position on our list of 15 countries with the highest economic mobility in the world.

9. New Zealand

Social Mobility rank: 15

Economic Freedom Index rank: 5

Average Rank: 10

New Zealand is a strong advocate of fair women representation at all job levels. The government supports mitigation of gender disparity and their top public service positions have been more than adequately filled by women. Furthermore, they engage in policy making that ensures economic growth of the low-income population in the country. This is evidenced by the Recognized Seasonal Employer (RSE) Scheme, which has directly contributed towards higher living standards. Furthermore, with a strong, stable economy and compliance with rules and regulations, New Zealand has quite an impressive economic freedom index ranking, making them stand out as an economically mobile society.

8. Luxembourg

Social Mobility rank: 12

Economic Freedom Index rank: 7

Average Rank: 9.5

The Global Social Mobility Report, 2020, ranks Luxembourg at the 10th position. Not only does the country excel in the health sector, they are also performing well in the education quality and equity aspect. Furthermore, the country’s intolerance towards corruption has nurtured an environment of transparency that encourages investment, open-market behavior, and entrepreneurship. Thus, it is no wonder that they make it to the list of the countries with the highest economic mobility in the world.

7. Ireland

Social Mobility rank: 14

Economic Freedom Index rank: 3

Average Rank: 8.5

Ireland has recognized the necessity of educational uplift in order to promote and sustain social/economic mobility. A recent annual Diversity and Inclusion (D&I) conference brought many organizational leaders to the forum. Almost all of them were found to be keenly involved in pursuing educational programs that would foster social mobility. The country is also aware of the link between economic prosperity and social uplift. Therefore, they have formed an open-market, globally competitive, business and trade model that is bolstered with strong institutional performance.

6. Finland

Social Mobility rank: 4

Economic Freedom Index rank: 11

Average Rank: 7.5

Finland has been enjoying a top ranking on the Global Social Mobility Index for a while now. This is mainly credited to high income mobility. They have world top class educational system — based on the inclusive education policy. It is also one of the most gender and income equal countries in the world. The cherry on the top is their social protection coverage. To the already awe inspiring list can be added the economic freedom maintained by the country. This should then not come as a surprise that Finland is one of the countries with the highest economic mobility in the world.

Click here to see the 5 Countries With the Highest Economic Mobility in the World.

Suggested Articles:

Disclosure: None. 15 Countries With the Highest Economic Mobility in the World is originally published on Insider Monkey.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

  • The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
  • Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
  • Lifetime Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

 

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

  1. Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
  2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
  3. Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…