Index of social mobility of the World Economic Forum
The Global Social Mobility Index is an index prepared by the World Economic Forum. The inaugural index from 2020 ranked 82 countries and has not been updated since. The Index measures social mobility holistically through 5 determinants. The findings from the index were then used in the World Economic Forum's Global Social Mobility Report 2020, which provided recommendations for governments and businesses. Researchers have used the index to analyze income inequality and have determined reasons for countries to improve social mobility.
The Global Social Mobility Index was established by the World Economic Forum in 2020 in light of the changes caused by globalization and technological advancement.[1] The results and findings of the index are summarized in the Global Social Mobility Report 2020.[1] The index differs from previous measures of social mobility because it uses a more holistic methodology, ultimately measuring the causes of social mobility.[1] Previous measures focused on comparing intergenerational incomes.[1] These comparisons drew data from different time periods, and thus it was more difficult to draw clear conclusions about the present.[1]
Methodology summary
The World Economic Forum measured social mobility through five determinants: health, education, technology, work, and institutions.[2] These five determinants are measured by the following ten pillars, each with its own set of parameters.[1]
World map of the Global Social Mobility Index (2020).
Below is the list of 82 countries ranked by their score in the inaugural Global Social Mobility Index 2020.[1] The value 100 was the highest possible score a country could receive.[1]
The World Economic Forum compiled its findings from the Global Social Mobility Index in its Global Social Mobility Report 2020 which includes information about the current state of economic inequality and provides recommendations for governments and businesses to alleviate inequalities.[1] This section provides a summary of the report’s findings.[1]
The World Economic Forum finds that the Fourth Industrial Revolution, which has involved rapid globalization and technological advancements, has led to increased inequality.[1] For example, the World Economic Forum notes that the top percent of US earners made 158% more in 2018 than in 1979, whereas the bottom 90 percent of earners made only 24% more.[1] In a review of the report, Hanna Ziady, a CNN Business contributor, states that in order for an American household with low income to reach the American median household income, it would require five generations.[4] In light of these findings, Bhowmick, a researcher for the Observer Research Foundation, argues that policies that address social mobility are essential for countries with high income inequality to reduce poverty levels.[5]
In a review of the report, Dr. Helal Uddin Ahmed writing for The Financial Express highlights that a social mobility agenda is needed to reduce inequality, and thus the organization created a set of goals that governments should prioritize.[6] The World Economic Forum advises that governments use taxation for equality-focused public spending.[1] To increase social mobility in the labor force, the World Economic Forum urges governments to find ways to support the expansion of education and lifelong learning which includes developing human capital along with workers’ careers.[1] Dr. Helal Uddin Ahmed, in agreement with the World Economic Forum, states that improving education effectively involves spending on programs that target disadvantaged youth, placing quality of education as a priority.[6]
The Global Social Mobility Report lists a set of goals for businesses: providing fair wages, educating their workers, and having a more merit-based hiring process.[1] The report states that businesses benefit from socioeconomic equality because their consumer bases increase, consumer-business relations strengthen, and the economic environment stabilizes.[1] Dr. Helal Uddin Ahmed finds that these benefits incentivize businesses to contribute to equality for economic reasons, not just ethical ones.[6]
As Jones, managing editor for the Visual Capitalist, highlights, the Global Social Mobility Report 2020 also warns countries of the potential risks associated with low social mobility: unstable work and living environments, distrust in institutions, distrust in politics, and societal unraveling.[2] Jones argues that the economic cost is high as well.[2] She points out a statistic from the report claiming that if every country were to raise its score on the index by ten, global GDP could grow an additional 4.41% by 2030.[2]
Global Social Mobility Index (2020) application
Fifekova, a researcher of economic policy at the University of Economics in Bratislava, et al. have found the Global Social Mobility Index to be a key determinant of income inequality.[7] The relationship between social mobility and income inequality can be explained by cause-effect cycles.[7] Less equality of opportunity yields lower social mobility which leads to inherited inequalities, and the cycle continues.[7]
Knowing that social mobility is a measure of income inequality, Suriyanrattakorn and Chang, researchers at Udon Thani Rajabjat University and National Chung Hsing University respectively, have found a relationship between the Global Social Mobility Index and life satisfaction measured by subjective well-being.[8] Thus, countries with high inequality tend to have lower average national life satisfaction.[8] The researchers conclude that countries with low social mobility should focus on policies that promote income equality in order to increase the well-being of their citizens.[8]
Mwamba, an economics professor at the University of Johannesburg, et al. have found that the income level of a country was not necessarily correlated with its social mobility level.[9] In agreement with the World Economic Forum, Mwamba et al. argue that it is difficult to ascend the social ladder regardless of a country’s income level.[9] Thus, the research suggests that all countries can benefit from improvements in social mobility.[9]
In light of the World Economic Report’s findings, McKinsey and Company conducted research on the UK to find that the Global Social Mobility Index has implications for the UK’s national economy as well as corporations.[10] They conclude that low social mobility leads to inefficient talent allocation, and when paired with inequalities in gender or race, decreases the potential of the national labor force.[10]
1 2 3 Fifeková, Elena, Eduard Nežinský, and Andrea Valachová. "Social Mobility as an Income Inequality Determinant." DANUBE, vol. 13, no. 3, 2022, pp. 226-239, https://doi.org/10.2478/danb-2022-0014
1 2 3 Suriyanrattakorn and Chia-Lin Chang. "Does life satisfaction vary with income inequality and social mobility?" Social Sciences & Humanities Open, vol. 6, no. 1, 2022, https://doi.org/10.1016/j.ssaho.2022.100326
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Denmark 
Norway 
Finland 
Sweden 
Iceland 
Netherlands 
Switzerland 
Belgium 
Austria 
Luxembourg 
Germany 
France 
Slovenia 
Canada 
Japan 
Australia 
Malta 
Ireland 
Czech Republic 
Singapore 
United Kingdom 
New Zealand 
Estonia 
Portugal 
South Korea 
Lithuania 
United States 
Spain 
Cyprus 
Poland 
Latvia 
Slovakia 
Israel 
Italy 
Uruguay 
Croatia 
Hungary 
Kazakhstan 
Russia 
Bulgaria 
Serbia 
Romania 
Malaysia 
Costa Rica 
China 
Ukraine 
Chile 
Greece 
Moldova 
Vietnam 
Argentina 
Saudi Arabia 
Georgia 
Albania 
Thailand 
Armenia 
Ecuador 
Mexico 
Sri Lanka 
Brazil 
Philippines 
Tunisia 
Panama 
Turkey 
Colombia 
Peru 
Indonesia 
El Salvador 
Paraguay 
Ghana 
Egypt 
Laos 
Morocco 
Honduras 
Guatemala 
India 
South Africa 
Bangladesh 
Pakistan 
Cameroon 
Senegal 
Ivory Coast