What & Why

Economic connectedness is interaction between people of different socioeconomic statuses. In economically connected communities, people form relationships across economic lines. 

These relationships might be deep friendships. Others might be casual connections or acquaintances. They can be fostered in many places that bring people together: neighborhoods, schools, workplaces, houses of worship, sports leagues, small businesses, or libraries. 

Research from Opportunity Insights identifies economic connectedness as one of the most significant factors when it comes to upward income mobility. Cross-class connections provide social capital, broadening horizons and opening doors to new opportunities.

America needs more people, places, and programs to get involved in fostering these important relationships.

Where someone grows up has a strong effect on their future. Neighborhoods influence the quality of schools, extracurricular activities, and opportunities in the job market. 

What makes someone’s zip code so consequential? It has to do with residential segregation. Public policy decisions, many motivated by discrimination, separated neighborhoods by race and income. Because students are assigned to public schools based on where they live, classrooms reflect the homogeneity of the surrounding community.

Individual choices also play a role. Many homeowners oppose loosening zoning laws that would increase density, reduce housing costs, and diversify neighborhoods. Affluent Americans have also withdrawn from spaces—such as public schools, municipal sports leagues, or community pools—in favor of private options that are only open to those who can afford them.  

All of this adds up to Americans across the economic spectrum lacking opportunities to live, play, and work together. As a result, people from lower socioeconomic backgrounds often do not have access to relationships and information that might change their circumstances. Additionally, an absence of cross-class interaction reduces the understanding that people with more affluence have of those with fewer resources. These realities fuel political discontent, weakening the social fabric of individual communities and the health of American democracy overall.

Cross-class relationships improve material well-being and lead to healthier democratic communities. When living in socioeconomically homogeneous bubbles, worldviews become smaller. Connections across differences have the opposite effect, opening people’s eyes to new perspectives and opportunities that make lives better and communities stronger.

Lateral connections, or relationships among people who share the same socioeconomic experience, are also important. These ties help to build trust and systems of support within social networks. 

Constitutional democracy flourishes when people feel a sense of common purpose. When people believe they have nothing in common, civic health falters. At a time when Americans feel divided from one another, economic connectedness can build the conviction that we are all in this together. 

Most people want to live in communities where friends and neighbors show up for each other. But in places marked by class segmentation, people are far less likely to support others they have not gotten the chance to know. Economic connectedness breaks down these barriers and enables individuals to recognize the humanity in those of different class backgrounds. 

This understanding has the power to tamp down on the resentments and divisions prevalent in American society today. Initial research has even found that residents in economically connected communities have more positive perceptions of people across the political aisle.

Relationships between people of high and low socioeconomic statuses are also impactful materially. Studies from Opportunity Insights show that economic connectedness is a significant driver of economic mobility. In fact, cross-class relationships are the best predictor of upward mobility or whether a person can improve their economic status throughout their life. Scholars do not yet know why this is the case, but research to date suggests that the benefits of economic connectedness come from an exchange of information. 

Take, for example, applying to college. Children from lower-income backgrounds might not have other family members who have gone to college and can lend guidance on how to get there. But if they had friends whose parents went to college, they would have a resource to ask about admissions essays, applying for financial aid, or preparing for the SAT. This access to information can put them on a path to college that they might not be on otherwise. 

College graduates are not the only ones with knowledge and skills to share. People from higher socioeconomic backgrounds are likewise limited in their exposure to insights that might enrich their lives. Economic connectedness can open their eyes to new opportunities and ways of solving problems.

The likelihood of connecting across class difference is influenced by whether people are in places that enable two conditions:

1. Exposure: proximity to others from different socioeconomic backgrounds. 
2. Interaction: meaningful engagement across socioeconomic lines.

The formation of social ties necessitates frequent opportunities for cross-class contact. These exchanges equate to more than random, one-off encounters on the subway or in line at the grocery store. They happen in places like the YMCA where players meet for a routine game of pick-up basketball or a public library where parents and children gather for Saturday story hour. In communities segregated by income, these are vital spaces to enable cross-class exposure. Such places have the power to bring people together who might otherwise not get the chance to meet.

Even in places that are economically integrated, however, relationships across socioeconomic differences do not necessarily form on their own. Intentional efforts and programs are needed to ensure that proximity to people of different class backgrounds leads to meaningful engagement.  

Why is taking purposeful steps to activate interaction so important? Without talking to one another, people cannot get the benefits of hearing about others’ lives and perspectives. And without making an extra effort to ensure people engage and talk with one another, it is not likely they will. In American society, economic standing often subtly translates into social status. Those subtle signs, whether unconscious or not, influence how people perceive one another. It makes sense then that people might fear being judged, misunderstood, or stigmatized by someone from a different class background and therefore be less willing to engage with them. 

These assumptions help explain why cross-class relationships are not always established in places that are socioeconomically diverse on paper. Exposure is important, but it is only the first piece of the puzzle. Building an environment where trust can be felt across the board is required to help people truly connect across socioeconomic lines.

The first step in building economic connectedness is determining whether a community if facing a lack of exposure or limited chances for interaction among people of different backgrounds. These case studies showcase effective mechanisms to create socioeconomic diversity in neighborhoods, schools, and civic institutions through intentional community development and programming initiatives. Others illustrate how to cultivate the conditions within integrated spaces needed for people to form cross-class connections. 

Taken together, these examples demonstrate common features required to foster economic connectedness. For community and institutional leaders seeking to help create relationships across class lines, here are a few key ingredients to consider: 

Invest in environments that can bring people together across the income spectrum
Case Studies: Spartanburg, South Carolina Neighborhood Initiative and YMCA in Southeast Raleigh, North Carolina

Create programming that is attractive to a diverse range of individuals
Case Study: Waimea Public Library

Connect people through their common interests or shared projects
Case Studies: Community Rowing Inc. and Folded Map Project

Have trained brokers who are skilled at getting people to engage and communicate with one another
Case Study: American Exchange Project

Make cross-class connections and networks a primary objective of community projects and institutional programming
Case Studies: Career-Connected Learning, Peer Mentorship in Palo Alto, and Richard King Mellon Foundation

Want help determining which of these ingredients your community or organization needs? See our guiding questions to get you started on your economic connectedness journey.