Wealth by Association? How Social Networks Drive Inequality in Hawaii

from UHERO, April 25, 2024

Studies show that economic connectedness, a poor individual’s share of wealthy friends, significantly impacts economic mobility.

Hawaii ranks highly in this metric compared to other states, but disparities exist in local schools.

Private high schools have much higher economic connectedness than public schools, driven mainly by students’ exposure to wealthy peers.

To improve connectedness, policymakers should consider strategies such as housing voucher programs, which have been shown to improve mobility for low-income families, paired with evidence showing that reducing regulatory constraints on homebuilding can improve housing affordability.

Implementing such strategies could create a more opportunity-rich future for Hawaii’s low-income residents.

PDF: Brief