10 Places That Can Boost Your Child’s Future Income (& 10 That Won’t)

Can Moving Make Money for Your Kid?

Raising your kids in the right place can have a significant effect on their future earnings.

That’s according to research from economists who studied families with children who moved to different counties from 1996 through 2012.

The effect is especially pronounced for low-income families, according to the paper from Raj Chetty and Nathaniel Hendren, economists from Stanford University and Harvard University, respectively. And the disparities can be huge, even in neighboring counties.

For example, growing up in DuPage County, Illinois, will reportedly increase the earnings of a child by 30% compared to growing up in neighboring Cook County, a huge difference for kids living in the suburbs of Chicago versus the city itself.

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Where Upward Mobility Happens

Counties linked with greater upward mobility generally had less extreme poverty, less income inequality, better schools, a larger share of two-parent households and lower crime rates. Such places generally also cost more to live in, but not always, creating what Chetty and Hendred called “opportunity bargains” for families looking to move.

The economists hope to continue their study in smaller areas like ZIP codes. This could help show how individual school districts impact future earnings.

Before you consider a move for your family, it’s a good idea to know your financial situation, including your credit scores, as this can impact the terms and conditions you can get on a mortgage. You can view two of your credit scores, updated every 14 days, for free on Credit.com. You may also want to check out these 10 cities where families are better off moving to the ‘burbs (and 10 where they’re not). 

Some notes on the data: The predicted change in incomes is for people aged 26 whose parents were relatively poor, in the 25th percentile of the national income distribution. They compare the incomes of children who grew up in each county against the average income of kids whose parents were equally poor. All of the data comes from the calculations of Chetty and Hendred, using federal income tax records.

Check out our slideshow to see the 10 counties that give the biggest boost to the future earnings of kids who grow up there, and the 10 counties that had the worst effects on incomes.

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10th Biggest Increase: Middlesex County, New Jersey

Growing up here increases earnings 8.6%.

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9th Biggest Increase: Montgomery County, Maryland

Growing up here increases earnings 10.5%.

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8th Biggest Increase: Norfolk County, Massachusetts

Growing up here increases earnings 10.8%.

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7th Biggest Increase: King County, Washington

Growing up here increases earnings 11.3%.

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6th Biggest Increase: Fairfax County, Virginia

Growing up here increases earnings 12.1%.

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5th Biggest Increase: Contra Costa County, California

Growing up here increases earnings 12.1%.

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4th Biggest Increase: Bucks County, Pennsylvania

Growing up here increases earnings 13.3%.

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3rd Biggest Increase: Bergen County, New Jersey

Growing up here increases earnings 14.1%.

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2nd Biggest Increase: Snohomish County, Washington

Growing up here increases earnings 14.4%.

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Biggest Increase: DuPage County, Illinois

Growing up here increases earnings 15.1%.

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10th Biggest Decrease: Pima County, Arizona

Growing up here decreases earnings 12.2%.

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9th Biggest Decrease: Bronx County, New York

Growing up here decreases earnings 12.3%.

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8th Biggest Decrease: Milwaukee County, Wisconsin

Growing up here decreases earnings 12.3%.

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7th Biggest Decrease: Wayne County, Michigan

Growing up here decreases earnings 12.5%.

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6th Biggest Decrease: Fresno County, California

Growing up here decreases earnings 12.9%.

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5th Biggest Decrease: Cook County, Illinois

Growing up here decreases earnings 13.3%.

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4th Biggest Decrease: Orange County, Florida

Growing up here decreases earnings 13.5%.

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3rd Biggest Decrease: Hillsborough County, Florida

Growing up here decreases earnings 13.5%.

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2nd Biggest Decrease: Mecklenburg County, North Carolina

Growing up here decreases earnings 13.8%.

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Biggest Decrease: Baltimore, Maryland

Growing up here decreases earnings 17.3%.

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