Germany is facing a concerning decline in social mobility, according to a new study released by the Ifo Institute The research indicates that a child’s economic background is increasingly determining their future financial success, potentially hindering opportunities for upward mobility
Federal Education Minister Karin Prien expressed significant concern regarding the findings, stating that the results are “alarming” and represent a loss of societal fairness and unrealized potential The study reveals a marked decrease in social mobility for individuals born in the mid-1970s and later Ifo economist Andreas Peichl noted that the influence of parental income on a child’s future earnings has doubled since the late 1970s and early 1980s
The Ifo Institute’s analysis suggests Germany’s rate of social mobility has fallen to a level comparable to that of the United States, where previous research led by Harvard economist Ray Chetty highlighted a similar erosion of the “American Dream” particularly impacting the middle class
In response to the findings, Minister Prien announced intentions to strengthen initiatives aimed at improving opportunities for all children These plans include increased investment in early childhood education, particularly language development programs, focused support for schools in disadvantaged areas and targeted funding through programs such as the “Startchancen” program The goal, according to the Minister, is to ensure that all children have a fair chance to succeed regardless of their socioeconomic background