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How Similar Are Credit Scores Across Generations?


Abstract: With the rise in economic inequality in the United States in recent decades, there has been growing concern about whether there is a sufficient degree of equality of opportunity in our society. Policymakers and researchers alike often focus on studies of intergenerational mobility as a way of assessing opportunity. These studies typically analyze distinct aspects of socioeconomic status, such as income, education, occupational status, and health, and measure the association in these outcomes between parents and their adult children.1 If the association (level of similarity) is very high, then this may indicate that there is low mobility and relatively little opportunity for poor children to overcome their initial economic disadvantage.

Keywords: credit scores; Consumer credit; credit cards;

https://doi.org/10.21033/cfl-2019-424

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Provider: Federal Reserve Bank of Chicago

Part of Series: Chicago Fed Letter

Publication Date: 2019

Order Number: 424