Intergenerational transmission of economic risk and resource characteristics

Poverty remains a persistent problem for persons in the United States, despite periodic efforts to create a more equitable distribution of wealth. Poverty is associated with a host of negative health and mental health outcomes for persons and communities. Understanding the processes by which families achieve economic stability or mobility across generations is not well understood. This study used the framework of Conservation of Resources (COR) theory to generate and test hypotheses about the likelihood of intergenerational socioeconomic mobility. Following from COR theory, it was hypothesized that resource loss events would serve to retard investment behavior. The resource loss event under study was residential mobility; residential mobility was chosen because it has the potential to affect resource development across multiple life domains (including social, educational and employment domains). Socio-economic mobility followed theory-specified patterns. Persons experiencing frequent residential mobility were less likely to gain socio-economic resources over time, and more likely to lose resources over time. This pattern did not vary by gender or ethnic group membership. These data imply that intergenerational economic mobility is concentrated among groups of persons experiencing specific conditions that affect investment behavior. This research points to the need for additional study as to the loss conditions and buffers of resource loss that allow persons to gain or retain adequate socioeconomic resources.