In this article, we will look at the 15 countries with the highest social mobility in the world. We will also discuss the social mobility efforts of some companies. If you want to skip our detailed analysis, head straight to the 5 Countries With the Highest Social Mobility in the World.
Social mobility refers to the ability of individuals to move up or down the socio-economic ladder within a society. Countries with high social mobility, like the Nordic nations (e.g., Denmark, Norway, Sweden), exhibit low-income inequality, strong education systems, and comprehensive social welfare programs. These countries prioritize equal opportunities, which promote upward mobility.
Conversely, social mobility in the US compared to other countries is low as the US often faces greater income inequality, limited access to quality education, and barriers to economic growth. It is worth mentioning that Pakistan, Cameroon, and Senegal are some countries with the lowest social mobility in the world.
Raj Chetty, an economist, recently talked about how hard it is for people in the United States to move up the economic ladder. His research shows that if someone was born in the 1980s or 1990s, they only have a 50/50 chance of doing better financially than their parents. His research also found that there could have been four times as many inventors in the US if everyone had the same opportunities, no matter their background. This means that because of inequality, the US might be missing out on a lot of great ideas and inventions.
Amazon.com Inc (NASDAQ:AMZN) actively fosters social mobility in the UK through various initiatives. As the Gold Partner of the 2022 UK Social Mobility Awards, Amazon.com, Inc (NASDAQ:AMZN) recognizes and celebrates efforts to improve social mobility. The company has launched the UK Social Mobility employee resource group, providing a platform for employees to share success stories and challenges. Amazon.com Inc (NASDAQ:AMZN)’s commitment extends to shaping Levelling Up Goals, a 14-point framework addressing social mobility challenges. The company’s Levelling Up Impact Report details its community and infrastructure development contributions, focusing on education and upskilling initiatives.
Such initiatives also explain why Amazon.com Inc (NASDAQ:AMZN) has been recognized as one of the top 75 employers in the UK for promoting social mobility in 2023. The Social Mobility Employer Index evaluates companies in eight areas, focusing on efforts like engaging with underserved communities and creating pathways for career growth. Amazon.com Inc (NASDAQ:AMZN)’s apprenticeship program, with an 85% success rate, and initiatives like The JOBS Project and Career Choice, confirms their dedication to creating a fairer society through opportunities for progression.
On the other hand, Chegg Inc (NYSE:CHGG) has also been active in promoting social mobility through its multifaceted approach to education and community impact. One major aspect is its commitment to accessibility and inclusivity, as evidenced by its engagement in initiatives like the Global Day of Impact. With Chegg Inc (NYSE:CHGG) volunteers contributing over 1,500 hours to mentoring students, the company actively provides an environment that goes beyond traditional learning, that focuses on personal development and community outreach.
Moreover, Chegg Inc (NYSE:CHGG)’s partnership with 30 organizations, with initiatives like delivering free coding camps through Kode with Klossy, also serves as an example to how the company is improving access to education and supporting learners’ needs. The company’s impact is further validated by its learner outcomes, with 90% of surveyed users reporting improved understanding of academic concepts and 91% achieving better grades. By prioritizing initiatives beyond the classroom, Chegg Inc (NYSE:CHGG) actively contributes to social mobility by empowering students with the tools, resources, and mentorship needed to succeed academically and professionally.
A busy city street with tall buildings and a crowd of people in business attire.
Methodology
To list the countries with the highest social mobility in the world, we have taken two different metrics to assess social mobility by country in 2023. Firstly, we have looked at the World Economic Forum’s Global Social Mobility Index of 2020 and obtained the list of countries with the highest social mobility scores. Secondly, we used our list of the most egalitarian countries in the world. The idea is that the more egalitarian a country is, the less structural and systemic barriers there are to social mobility within the country.
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 of those average ranks 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 ranked higher.
Here is a list of the countries with the highest social mobility in the world.
15. New Zealand
Egalitarianism: 11
SM Index: 22
Average Rank: 16.5
In New Zealand, the recent achievement of the lowest-ever gender pay gap in the public service, at 7.1%, reflects the country’s ambitious commitment to fostering social mobility. The decline of 5.1 percentage points since the introduction of the 2018 Gender Pay Gap Action Plan confirms tangible progress. Additionally, New Zealand is a global leader in women’s representation in top public service roles, with 53.5% holding such positions which is way above the OECD average.
14. Ireland
Egalitarianism: 10
SM Index: 18
Average Rank: 14
In Ireland, the importance of education in promoting social mobility has been further emphasized at a conference hosted by Matheson LLP and Trinity College Dublin. The annual Diversity and Inclusion (D&I) conference brought together leaders from different sectors, disclosing that two-thirds of organizations have integrated social mobility into their D&I strategies. Educational programs, like Transition Year initiatives, Third Level access programs, and scholarships, were highlighted as active measures promoting social mobility.
13. Canada
Egalitarianism: 12
SM Index: 14
Average Rank: 13
A survey by the Angus Reid Institute and the University of Alberta reveals that 42% of Canadians identify themselves as middle class, while 17% each align with working, lower middle, and upper middle classes. Interestingly, only 1% see themselves as upper class. Despite 59% focusing on hard work as crucial for success, 35% believe their class remained static across generations. However, social class mobility is evident as 35% of citizens have achieved a higher status than their parents.
Canada is one of the most socially advanced countries in the world.
12. Luxembourg
Egalitarianism: 15
SM Index: 10
Average Rank: 12.5
Luxembourg made headlines by making all public transport free in 2020, aiming to reshape mobility habits and promote environmental sustainability. Deputy Prime Minister François Bausch mentioned how the decision will serve as a catalyst for societal change. Luxembourg is one of the countries with the highest social mobility in the world.
11. Australia
Egalitarianism: 8
SM Index: 16
Average Rank: 12
While Australia has a high social mobility, it is lagging behind when it comes to economic mobility. Treasury research reveals that children born into the poorest households face a limited chance of upward mobility, with only a 10% probability of becoming top-income earners in their lifetime. The study found that those in the bottom fifth of households have a 12.3% chance of reaching the top fifth, a figure 60% higher than in the United States.
10. Belgium
Egalitarianism: 16
SM Index: 8
Average Rank: 12
In an effort to improve social mobility in Belgium, the European Commission is allocating €2.8 million ($3.02 million) from the European Globalisation Adjustment Fund to help 421 workers dismissed by Makro Cash & Carry. Following the retail chain’s bankruptcy in January 2023, the support package included job search assistance, skills training, and guidance for potential entrepreneurs. Belgium is one of the countries with the highest upwork social mobility in the world.
9. Austria
Egalitarianism: 14
SM Index: 9
Average Rank: 11.5
In Austria, recent social policy developments aim to improve social mobility. The long-anticipated reform of long-term care addresses training, working conditions, and financial support for caring relatives. Despite falling short on structural challenges, this reform promises progress. Austria is also one of the most egalitarian countries in the world.
8. Germany
Egalitarianism: 9
SM Index: 11
Average Rank: 10
In Germany, children born to wealthier parents are about 50% more likely to graduate high school (Abitur) than those born to less wealthy parents. This gap has stayed the same for recent generations despite more children getting the chance for higher education. Interestingly, social mobility varies a lot across different regions in Germany. Even within states, some areas show higher chances for upward mobility than others. This suggests that where you grow up in Germany can largely impact your opportunities.
7. Switzerland
Egalitarianism: 5
SM Index: 7
Average Rank: 6
Switzerland consistently makes progress in promoting social mobility, especially in education. The Organization for Economic Co-operation and Development (OECD) reported that the country excels in providing equal opportunities for students from different backgrounds. Swiss students had more chances for upward educational mobility compared to the OECD average.
On a side note, Switzerland is one of the best countries to work and make money.
6. Netherlands
Egalitarianism: 6
SM Index: 6
Average Rank: 6
The recent agreement between Dutch banks and the central bank to simplify the process of opening business accounts for sex workers is a noteworthy step toward improving social mobility. By providing sex workers with easier access to financial services, this initiative contributes to reducing barriers that may hinder their economic mobility. Enhanced financial inclusion fosters social mobility by enabling individuals, including those in marginalized professions, to manage their finances more effectively and participate more fully in economic activities, thereby promoting upward social and economic mobility.
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Disclosure: None. 15 Countries With the Highest Social Mobility in the World is originally published on Insider Monkey.